Best’s News & Research Service - July 17, 2025 10:08 AM (EDT)
AM Best Affirms Credit Ratings of Atradius Seguros de Crédito, S.A.
- July 17, 2025 10:08 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit rating of “a+” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Atradius Seguros de Crédito, S.A. (Atradius México) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Atradius México’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The ratings also reflect Atradius México’s strategic importance to the overall Atradius group, given its leading position within Mexico’s credit insurance segment, its importance as a gateway to Latin America’s insurance markets, good financial flexibility derived from its strong capitalization, supportive reinsurance provided by the group and its seasoned management team. These positive rating factors are offset partially by the intrinsic volatility in the credit insurance market.
Atradius México benefits from its integration within the Atradius group, which allows it to leverage operations on the same practices and procedures, reinsurance, draft facilities and underwriting selection. In addition, its ERM practices show a high level of integration to its immediate parent, Atradius N.V.
Atradius México offers credit insurance in its domestic market and was ranked as Mexico’s largest credit insurer in 2024, holding 37% of the market share.
Atradius México’s operating performance remained strong in 2024 due to its sound underwriting and expense control practices to face challenging market conditions, which are reflected in a return on equity of 9%. AM Best expects Atradius México’s profitability to continue and rely on its solid operating practices and consistent financial product, despite headwinds resulting from a one-off large claim event that pressured bottom-line results in 2024.
AM Best considers Atradius México’s risk-adjusted capitalization to be at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company maintains significant financial flexibility as its investment portfolio is concentrated in short-term fixed-income instruments, with a portion designed to match currencies in U.S. dollars. The Atradius group further demonstrates its support to Atradius México through a reinsurance program placed with Atradius Crédito y Caución, S.A. de Seguros y Reaseguros (a group entity merged with Atradius Reinsurance Designated Activity Company, Atradius México’s previous reinsurer).
If there are positive rating actions taken on the main operating subsidiaries of Atradius N.V., as a result of a change in the key rating fundamentals of Atradius N.V.’s parent company, Grupo Catalana Occidente S.A., Atradius México’s ratings likely would move in tandem. Likewise, if there are negative rating actions taken on the Atradius group, because of a sustained decline in operating performance or a sustained and material deterioration in Atradius N.V.’s consolidated risk-adjusted capitalization, Atradius México’s ratings would mirror those same rating actions.
A change in AM Best’s perception regarding the actual or perceived level of strategic importance of
Atradius México to the Atradius group of companies 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:
- Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024)
- Best’s National Scale Ratings (Version May 16, 2024)
- Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024)
- Evaluating Country Risk (Version June 6, 2024)
- Rating Surety Companies (Version April 25, 2024)
- Scoring and Assessing Innovation (Version Feb. 20, 2025)
- Understanding Global BCAR (Version Aug. 1, 2024)
- Understanding BCAR for US Property/Casualty Insurers (Version May 22, 2025)
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: July 18, 2024
- Initial Rating Date: Dec. 19, 2014
- Date Range of Financial Data Used: Dec. 31, 2019-Dec. 31, 2024
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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