Best’s News & Research Service - December 19, 2019 04:15 PM (EST)
AM Best Places Credit Ratings of Acerta Compañia de Seguros, S.A. Under Review With Negative Implications
- December 19, 2019 04:15 PM (EST)
Mexico City //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” of Acerta Compañia de Seguros, S.A. (Acerta) (Panama).
The rating action reflects the uncertainty on prospective balance sheet and operating performance, as well as management´s lack of communication relating to the interactive rating process.
Acerta initiated operations in Panama City in 2010. As of year-end 2019, the company stood as Panama’s 10th-largest insurer, with a market share of more than 1.6%. Its main business segments are surety and motor, in terms of gross written premiums. Acerta operates through a network of agents, brokers and direct distribution channels.
The under review status with negative implications reflects AM Best´s concern as to the outcome of the final ratings, driven by the lack of necessary information to complete assessments on balance sheet strength and operating performance.
The ratings will remain under review while AM Best attempts to engage with management to collect necessary information required to assess the company´s rating fundamentals.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, 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 & Holding Company Analysis (Version Oct. 13, 2017)
- Evaluating Country Risk (Version Oct. 13, 2017)
- Rating Surety Companies (Version Oct. 13,2017)
- Understanding Universal BCAR (Version May 23, 2019)
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, please refer to Guide to Best’s Credit Ratings.
- Previous Rating Date: Nov. 28, 2018
- Date Range of Financial Data Used: June 30, 2014-June 30, 2019
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.
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. 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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.