Best’s News & Research Service - October 18, 2024 10:35 AM (EDT)
AM Best Assigns Credit Ratings to Compañía de Seguros Generales Everest Mexico, S.A. de C.V.
- October 18, 2024 10:35 AM (EDT)
//BestWire// - AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior) to Compañía de Seguros Generales Everest Mexico, S.A. de C.V. (Everest Mexico) (Mexico City, Mexico). In addition, AM Best has assigned a Mexico National Scale Rating of “aaa.MX” (Exceptional). The outlook assigned to these Credit Ratings (ratings) is stable.
Everest Mexico is a member of Everest Group, Ltd. (Everest), which on a consolidated basis has a balance sheet strength that AM Best assesses as strongest, as well as adequate operating performance, a very favorable business profile and appropriate enterprise risk management (ERM).
The ratings reflect Everest Mexico’s geographic and strategic importance to Everest in Latin America, as well as the integration of Everest’s practices, procedures, reinsurance, draft facilities, underwriting selection and ERM framework into Everest Mexico, and the synergies and operating efficiencies derived from being a group member. Partially offsetting these positive rating factors are the competitive dynamics in Mexico and Latin America’s property/casualty (P/C) segment.
Everest Mexico is a startup that received official approval in 2024 to conduct business in the P/C and financial lines segments. Going forward, AM Best expects the company to continue to adhere to the underwriting,
ERM practices and procedures implemented from Everest, which has reported solid results amid a hardened reinsurance market.
If there are positive rating actions on the Everest group, as a result of a sustained favorable trend in operating performance above peer averages, the ratings of Everest Mexico would mirror those actions.
If there are negative rating actions on the Everest group, as a result of a material decline in Everest's risk-adjusted capitalization, or a sustained negative trend in underwriting and operating performance metrics below AM Best’s expectation for the adequate assessment level, the ratings of Everest Mexico would mirror those same actions.
A change in AM Best’s perception regarding the actual or perceived level of Everest Mexico’s strategic importance to the Everest group also could impact the company’s ratings.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Aug. 29, 2024), 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:
· Evaluating Country Risk (June 6, 2024)
· Best’s National Scale Ratings (May 16, 2024)
· Scoring and Assessing Innovation (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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.
· Previous Rating Date: none
· Initial Rating Date: Oct. 18, 2024
· Date Range of Financial Data Used: none
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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.
AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. AM Best keeps certain activities of its business units separate from each other to preserve the independence and objectivity of their respective activities. As a result, certain business units of AM Best may have information that is not available to other AM Best business units. AM Best has established policies and procedures to maintain the confidentiality of certain confidential (non-public) information received in connection with each analytical process. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. 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.