Best’s News & Research Service - May 27, 2026 03:07 PM (EDT)
AM Best Affirms Credit Ratings of Instituto Nacional de Seguros
- May 27, 2026 03:07 PM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Instituto Nacional de Seguros (INS) (San Jose, Costa Rica). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect INS’ balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
INS’ risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and is supported by a comprehensive and adequate reinsurance program, solid operating performance and its position as the leading insurer in Costa Rica. INS’ business profile assessment considers the characteristics of Costa Rica’s market, derived from the country’s Insurance Law of 2008, and includes INS’ robust market share and the guarantee provided by Costa Rica’s government to support INS’ domestic obligations.
INS is Costa Rica’s largest insurer with a market share of 62%, as of December 2025. The company continues to dominate the compulsory workers’ compensation and mandatory auto insurance segments despite the market opening to other participants several years ago.
In 2025, INS reported moderate premium growth, while claims increased compared with the previous year, in line with broader market trends. Although the combined ratio deteriorated relative to the prior year, it remained consistent with historical ranges, supported by stable expense ratios and continued underwriting discipline following portfolio adjustments implemented in recent years.
Investment income, based on the company’s conservative investment portfolio, contributed to a net income of USD 108 million at year-end 2025, providing a solid growth for its capital base, despite market volatility.
AM Best expects INS to continue improving and consolidating its business by implementing its strategy progressively, which should offset increased competition in the voluntary segments. The company is in a good position to maintain its risk-adjusted capitalization at the strongest level, as measured by BCAR, due to its good profitability, appropriate ERM practices and adequate reinsurance with highly rated international reinsurers, which provides a buffer for variations in claim severity and catastrophe events.
Negative rating actions could result if there is a sustained deteriorating trend in INS’ underwriting and operating performance either as a result of losses or implementation risk of the business strategy. While unlikely, positive rating actions could occur as result of a sustained strengthening of its profitability and operational efficiency metrics.
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. 27, 2026)
- 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: May 30, 2025
- Initial Rating Date: Jan. 24, 2012
- Date Range of Financial Data Used: Dec. 31, 2020-Dec. 31, 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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