Best’s News & Research Service - August 01, 2023 04:03 PM (EDT)
AM Best Maintains Under Review Status for Credit Ratings of Insignia Life S.A. de C.V. With Implications Revised to Developing
- August 01, 2023 04:03 PM (EDT)
Mexico City //BestWire// - AM Best has maintained the under review status and revised the implications to developing from negative for the Financial Strength Rating of B (Fair), the Long-Term Issuer Credit Rating of “bb” (Fair) and the Mexico National Scale Rating of “a.MX” (Excellent) of Insignia Life S.A. de C.V. (Insignia) (Mexico) following the announcement that it will be acquired by Grupo MAPFRE.
These Credit Ratings (ratings) reflect Insignia’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The proposed acquisition has the potential to alleviate AM Best’s ongoing concern regarding the financial situation of Insignia’s parent company, Proyecto Insignia S.A.P.I de C.V., and its effects on the financial strength of Insignia. The under review with developing implications status reflects that this transaction is still in its early stages and requires regulatory approval from Mexico’s regulator, the Comisión Nacional De Seguros y Fianzas (CNSF). The ratings will remain under review until AM Best can fully assess the financial and operational impacts of the acquisition.
This rating action is the result of an accepted appeal from Insignia Life S.A de C.V.
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:
- AM Best’s Ratings On a National Scale (Version June 15, 2023)
- Available Capital and Holding Company Analysis (Version Oct. 13, 2017)
- Evaluating Country Risk (Version May 4, 2023)
- Understanding Global BCAR (Version July 6, 2023)
- Scoring and Assessing Innovation (Version Feb. 27, 2023)
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. 19, 2022
- Initial Rating Date: Jan. 11, 2016
- Date Range of Financial Data Used: Dec. 31, 2017-March 31, 2023
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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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.
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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.