Best’s News & Research Service - February 11, 2022 01:19 PM (EST)
AM Best Places Credit Ratings of Grupo Mexicano de Seguros, S.A. de C.V. Under Review With Negative Implications
- February 11, 2022 01:19 PM (EST)
Mexico City //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb+” (Good) and the Mexico National Scale Rating of “aa+.MX” (Superior) of Grupo Mexicano de Seguros, S.A. de C.V. (GMX) (Mexico City, Mexico) following the ongoing events regarding GMX’s exposure to a significant claim made by the subway system of Mexico City, for a fire in its control pit that occurred in January 2021.
The previous positive outlooks of GMX’s ratings pointed to the upward trend in the company’s balance sheet strength, maintained through favorable underwriting and investment performance. The under review with negative implications status is derived from the potential negative effects that the materialization of this exposure could have on GMX’s balance sheet strength and business profile, which could become limited by reputational risk, as well as pressing concerns regarding the corporate governance and the company’s enterprise risk management practices. AM Best will continue to monitor this situation as it evolves.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), 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 Oct. 13, 2017)
- Understanding Global BCAR (Version July 22, 2021)
- Catastrophe Analysis in AM Best Ratings Version (Oct. 13, 2017)
- Available Capital & Holding Company Analysis (Version Oct. 13, 2017)
- AM Best’s Ratings On a National Scale (Version Oct. 13, 2017)
- Scoring and Assessing Innovation (Version March 5, 2020)
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: Feb. 5, 2021
- Date Range of Financial Data Used: Dec. 31, 2015-Sept. 30, 2021
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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.