Best’s News & Research Service - December 12, 2025 08:31 AM (EST)
AM Best Affirms Credit Ratings of HDI Global Seguros, S.A.
- December 12, 2025 08:31 AM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of HDI Global Seguros, S.A. (HDI-GS) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect HDI-GS’ 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 HDI-GS’ substantial reinsurance support from its group through HDI Global Network AG and HDI Global Specialty SE. Additionally, the ratings factor in HDI-GS’ integration with its ultimate parent company, HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.), in terms of business model and consistent financial support.
The stable outlook on HDI-GS’ ratings reflects AM Best’s expectation that HDI V.a.G.’s consolidated risk-adjusted capitalization will be maintained at a level supportive of the very strong balance sheet strength assessment, further supported by conservative capital management and prudent risk controls. The group’s asset-liability and liquidity management capabilities are expected to help it withstand current external headwinds associated with financial market volatility and uncertain macroeconomic prospects. AM Best expects the group’s performance to remain strong, supported by further improvement in the profitability of its primary segment.
HDI-GS is a subsidiary of HDI Global Insurance Company (99.9%) and HDI Global Network AG (0.1%), which are subsidiaries of HDI V.a.G. The company’s business portfolio is composed of fire, liability, marine and engineering risks. The company’s business model utilizes a very low premium retention level, standing at 0.19% as of December 2024, which is supported thoroughly by an automatic facultative reinsurance agreement provided by its affiliate and minority shareholder, HDI Global Network AG.
HDI-GS’ risk-adjusted capitalization stands at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), with growth in capital and surplus mainly driven by consistent positive bottom-line results. Given the company’s ceding profile, credit risk continues to be the main driver for required capital; however, AM Best does not view this as a major concern given the counterparty’s high level of security and the binding characteristics of the contract toward HDI-GS’ obligations. Support from the group in the past came through capital injections aimed to foster growth and maintain adequate reserves and capital sufficiency.
Reinsurance commissions continue to impact acquisition costs positively given that HDI-GS’ has an
extensive reinsurance program placed with its affiliates, HDI Global Network AG and HDI Global Specialty SE, which continues to be a main source of profitability. The company has been able to sustain profitability through underwriting results while being moderately backed by investment income.
Positive rating action for HDI V.a.G. may arise from sustained improvements in the group’s business profile as a result of greater diversification while maintaining both a very strong balance sheet strength assessment and a strong operating performance across business segments supported by a robust ERM framework, prompting HDI-GS’ rating to move in tandem.
Negative rating actions may arise following a material weakening of HDI V.a.G.'s consolidated risk-adjusted capitalization, causing HDI-GS’ ratings to also move in tandem. This could occur, for example, due to significant deterioration of HDI V.a.G.’s operating performance or material asset impairments, as well as a result of a weakening of the group’s prudent risk culture. A deterioration of HDI V.a.G.’s operating performance below the strong level, due to factors such as unexpectedly high losses or marked deterioration in underwriting risk controls, resulting in a sustained decline of technical results, could also lead to negative rating actions, and HDI-GS’ ratings would replicate those actions.
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 (Version June 6, 2024)
· Understanding Global BCAR (Version Sept. 18, 2025)
· Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024)
· Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
· Best's National Scale Ratings (Version July 31, 2025)
· Scoring and Assessing Innovation (Version Feb. 20, 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: Dec. 4, 2024
· Initial Rating Date: Dec. 3, 2015
· Date Range of Financial Data Used: Dec. 31, 2019-Sept. 30, 2025
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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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.