Best’s News & Research Service - December 18, 2025 12:59 PM (EST)
AM Best Upgrades Credit Ratings of Seguros e Inversiones, S.A.
- December 18, 2025 12:59 PM (EST)
//BestWire// - AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Seguros e Inversiones, S.A. (SISA) (El Salvador). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.
The ratings reflect SISA’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The upgrading of the ratings reflects SISA’s enhanced balance sheet strength underpinned by its reinforced risk-adjusted capitalization in conjunction with consistent improvements in El Salvador’s macroeconomic environment, which enhances AM Best’s view of SISA’s asset allocation strategy within non-investment grade fixed income.
The ratings also reflect SISA’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is supported by consistent profitability, a diversified business profile and its market-leading position, as well as its appropriate reinsurance program. The company’s affiliation with Inversiones Financieras Grupo Cuscatlíán S.A. (IFGC) provides synergy and operating efficiencies.
SISA initiated operations in 1962. At year-end 2024, the company was El Salvador’s market leader with 23.4% of gross premium written covering mainly domestic exposures. Since 2023, the company has gradually diversified into other Latin American geographies through assumed reinsurance business. Life insurance products comprise 43% of SISA’s business portfolio, with the balance being property/casualty products (44%) and health (13%). Historically, SISA’s distribution channels have been positioned mainly with brokers, pension funds, bancassurance and the government. In 2020-21, IFGC led the acquisition of Seguros SISA SV, S.A. (Seguros SISA SV) in order to support SISA’s growing domestic and regional expansions.
Additionally, SISA’s balance sheet strength assessment is supported by a comprehensive reinsurance program placed with reinsurers that have excellent security. However, the company’s strongest balance sheet strength assessment continues to be pressured by the country’s macro fundamentals, given SISA’s exposure to non-investment grade fixed income securities, which have eased as El Salvador continues to reflect signs of improvements.
SISA historically has shown disciplined underwriting, consistently reporting overall premium sufficiency levels that compare positively with its competitors, as reflected by a combined ratio of 97.2%, as of year-end 2024. AM Best expects SISA to maintain a stable forward-looking operating performance as previous impacts derived from the pension funds business and fireman tax no longer linger.
A sharp deterioration in operating performance or further pressure on SISA’s balance sheet strength resulting from capital outflows or driven by El Salvador´s macroeconomic conditions, could lead to negative rating actions. While highly unlikely, key rating factors that could lead to positive rating actions for SISA include enhancements to its current balance sheet strength assessment resulting from sustained improvements in El Salvador’s macroeconomic conditions, while maintaining its strongest risk-adjusted capitalization.
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:
· Understanding Global BCAR (Version Sept. 18, 2025)
· Evaluating Country Risk (Version June 6, 2024)
· Catastrophe Analysis in AM Best Ratings (Version Feb. 08, 2024)
· Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 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: Oct. 15, 2021
· Date Range of Financial Data Used: Dec.31, 2019-June 30, 2025
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