AM Best

MAY 18, 2023 02:03 PM (EDT)

AM Best Affirms Credit Ratings of Nacional de Seguros S.A. Compañía de Seguros Generales

 Olga Rubo, FRM
Senior Financial Analyst
+52 55 1102 2720, ext. 134

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


MEXICO CITY - MAY 18, 2023 02:03 PM (EDT)
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Nacional de Seguros S.A. Compañía de Seguros Generales (Nacional de Seguros) (Bogota, Colombia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Nacional de Seguros’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings also reflect the company’s very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and the profitability Nacional de Seguros has achieved during its relatively short track record. Partially offsetting these positive rating factors is the small size of the company, which limits business diversification given the inherent concentration risk, and a high dependence on reinsurance.

Nacional de Seguros began operations in 2014 after acquiring Ecoseguros S.A., a company in voluntary liquidation, with fulfillment and liability insurance licenses granted by the Colombian Financial Superintendence. Nacional de Seguros had less than a 2% market share in Colombia’s property/casualty segment, as of December 2022, and is the third-largest company in the fulfillment insurance sector with a 13% market share.

Nacional de Seguros’ risk-adjusted capitalization stands at the very strong level, as measured by BCAR, and is supported by a comprehensive reinsurance program and its consistent historical profitability. Credit risk, driven by reinsurance recoverables, is the main factor that could impact the company’s BCAR assessment.

Business operations are focused exclusively on Colombia; 81% of premiums proceed from Bogota, 11% from Medellin, and 8% from other cities.

Despite reporting fluctuations in gross premiums, the company has maintained a steady retention level, and constant profitability. Underwriting metrics are characterized by contained loss ratios, and negative acquisition cost ratios due to Nacional de Seguros’ high ceding profile. The company’s investment income has exhibited a stable trend in the past few years, moderately supporting Nacional de Seguros’ income generation.

AM Best does not expect positive rating actions in the medium term. Negative rating actions could occur if there is a significant increase in its business risk, as a result of negative consequences of high reinsurance dependence, or if by any other means, risk-adjusted capitalization becomes unsupportive of the current ratings. Negative rating actions also could occur if operating performance metrics deteriorate to the point of no longer being consistent with the adequate assessment.

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

Key insurance criteria reports utilized:

  • Evaluating Country Risk (Version May 4, 2023)

  • Understanding Global BCAR (Version June 30, 2022)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Rating Surety Companies (Version April 7, 2021)

  • Scoring and Assessing Innovation (Version Feb. 27, 2023)

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.

  • Previous Rating Date: May 27, 2022

  • Date Range of Financial Data Used: Dec. 31, 2016-Dec. 31, 2022

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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

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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.

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AMB# Company Name
092063 Nacional de Seguros S.A. Cia de Seg Gen