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Best’s News & Research Service - March 29, 2023 04:13 PM (EDT)

AM Best Affirms Credit Ratings of Acerta Compañia de Seguros, S.A.

  • March 29, 2023 04:13 PM (EDT)
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Mexico City //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” (Good) of Acerta Compañia de Seguros, S.A. (Acerta) (Panama). The outlook of these Credit Ratings (ratings) is positive.

The ratings reflect Acerta’s balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management (ERM).

The positive outlook on the FSR and Long-Term ICR is based on Acerta´s consistent adjustments in underwriting practices that positively influence its operating performance, while expanding its capital base. Additionally, consistent stability of its ultimate parent, Grupo Prival, S.A’s, performance could positively contribute to rating assessments.

The ratings also recognize Acerta’s affiliation to its ultimate parent, following management´s decision to reduce pressure in the regulatory capital requirement of its main financial institution, Prival Bank S.A., through major shareholder ownership of its insurance operation.

Acerta initiated operations in Panama City in 2010, and in 2017, the company acquired ADISA Panama. As of January 2023, the company stood as Panama’s 12th largest insurer, with a market share of 1.5%. Its main insurance lines of business are surety, motor and health, which are based on gross written premiums. Acerta operates through a network of agents, brokers and direct distribution channels.

The company’s capital and surplus has grown at a compound annual growth rate of 6.0% over the last five years, supported by profitability, as reflected by a return on equity of 5.8% in 2022. Acerta’s capitalization is reinforced by a diversified reinsurance program with highly rated entities. Moreover, its capitalization and liquidity have provided the company with flexibility in order to cover historical deviations in claims.

Acerta’s continuous claims-containment adjustments within its motor, multiple risks and health insurance lines, coupled with its expertise in the surety business, continue to reflect improvements in underwriting performance, as reflected by a combined ratio below 100% at year-end 2022. AM Best expects Acerta to sustain this trend through year-end 2023 supported by renovation of current contracts and an improved performance in its property/casualty business, despite challenges arising from a very competitive market and economic uncertainty.

AM Best also expects improvements in Acerta’s ERM framework in order to mitigate emerging risks that may erode the company’s balance sheet strength, operating performance or business profile.

Positive changes in the ratings could take place if the company sustains improvements in its operating performance, coupled with a thorough implementation of its ERM framework. Additionally, positive rating actions could take place if the ultimate parent´s ability and willingness to support the company continue while showing a consistent stability in its performance. Negative rating actions could occur if inconsistencies within its ERM profile, evolving market conditions or strategic opportunities affect the company’s risk-adjusted capitalization or business profile.

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

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 April 7, 2021)

  • Scoring and Assessing Innovation (Version Feb. 27, 2023)

  • Understanding Global BCAR (Version June 30, 2022)

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: March 11, 2022

  • Date Range of Financial Data Used: Dec. 31, 2017-Dec. 31, 2022

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

Panama Financial Strength Press Release A.M. Best Rating Services, Inc. Insurance Best's Credit Rating Action Issuer Credit Rating

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