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FOR IMMEDIATE RELEASE
MEXICO CITY - FEBRUARY 26, 2025 04:26 PM (EST)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to Aliado Seguros S.A. (Aliado) (Panama). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Aliado’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Aliado started operations in 2011 and is part of Grupo Aliado S.A., a Panamanian financial group founded in 1992. Banco Aliado, the banking subsidiary of the group, consolidates Aliado and provides operational efficiencies. Aliado is a multiline insurance company with a portfolio concentrated in the property/casualty business lines, and it mainly retains motor, group life and surety businesses. Its total business volume by the end of June 2024 was USD 30.9 million. As of November 2024, Aliado was the 12th largest insurance operation in Panama by market share.
Aliado’s balance sheet strength assessment of strongest reflects its strongest risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), consistently growing capital base driven by reinvestment of earnings, conservative investment strategy and a reliable reinsurance program that provides additional support.
AM Best considers Aliado’s operating performance to be adequate. The company’s profitable operating results have been driven by a positive technical performance characterized by a good quality of underwriting and contained operational expenses. Investments are a solid income source that further strengthen bottom-line results.
The ERM of the company is considered appropriate due to the defined risk appetites and tolerances, which are periodically reviewed by its risk committee through monitoring overall risk exposures, and its adherence to Banco Aliado’s ERM framework.
The stable outlooks reflect AM Best's expectation that Aliado's risk-adjusted capitalization will be maintained at the current levels through prudent capital base management, supported by profitable operating results.
Negative rating actions could take place if Aliado's operating performance weakens to a point that leads to capital outflows, impacting the current level of risk-adjusted capitalization. Conversely, although unlikely in the near term, positive rating actions could take place if Aliado's operating performance continues demonstrating good underwriting practices and profit-generation capabilities.
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:
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