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FOR IMMEDIATE RELEASE
MEXICO CITY - MARCH 08, 2023 02:45 PM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of B (Fair), the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” (Fair) and the Mexico National Scale Rating (NSR) of “a.MX” (Excellent) of Armour Secure Insurance S.A. de C.V. (Armour) (Mexico). The outlook of the FSR is stable, while the outlook of the Long-Term ICR and NSR is positive.
The Credit Ratings (ratings) reflect Armour’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).
The positive outlook on the Long-Term ICR and NSR reflects the corrective actions taken on financial leverage at the holding company level, which was derived from changes in the organizational structure of the group.
The strong balance sheet assessment reflects Armour’s capital base, consistently strengthened through the reinvestment of earnings. Armour has been able to sustain a profitable domestic operation through its underwriting results and investment income.
Armour’s business profile is limited due to its concentration in the niche market of title insurance in Mexico, coupled with challenges ahead for the real estate market there amid Mexico’s weakened economy.
AM Best’s view of the company’s ERM is marginal due to concerns regarding governance and availability of information at its holding company, Trebuchet Group Holdings Limited.
Positive rating actions could take place if Armour’s holding company maintains a prudent growth strategy and stabilizes its structure and capital management in AM Best’s view. Negative rating actions could take place if operating performance deteriorates to the point of affecting the company’s risk-adjusted capitalization.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.
This press release relates to rating(s) that have been published on AM Best’s website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.