[ad_1]
MEXICO CITY–(BUSINESS WIRE)–optimal Affirmed the B++ (Good) Financial Strength Rating (FSR) and the “bbb+” (Good) Long-Term Issuer Credit Rating (ICR) of AVLA Seguros de Credit andguarantee SA (AVLA) (Chile). The outlook for these credit ratings is stable.
AVLA’s ratings reflect what AM Best assesses as strong balance sheet strength, as well as adequate operating performance, a neutral business profile and appropriate overall risk management.
AVLA started doing business in Chile in 2013 as AVALCHILE and changed its name to AVLA in 2016. The company is owned by Bermuda-based AVLA Bermuda Holding Corp Ltd. AVLA specializes in financial guarantees, credit insurance and sureties, and is the number one company in financial guarantees and sureties and among the top three in credit insurance in Chile.
AM Best considers AVLA’s business profile to be neutral. The company has been able to successfully redefine its risk appetite in adverse market conditions. AM Best believes that the skills of the management team will continue to be key in adjusting product offerings in changing market conditions.
AM Best believes that the company’s operating performance is good; results over the past three years have been favorable. Positive net performance is supported by credit research income related to credit insurance policies through December 2023. AM Best will continue to monitor AVLA’s underwriting results and quality as the Chilean economy develops.
Based on Best’s Capital Adequacy Ratio (BCAR), AVLA’s balance sheet assessment was strong as its risk-adjusted capital ratio was rated as the strongest. However, given AVLA’s correlation with the parent company in terms of revenue and profit, financial leverage at the parent company level limits AM Best’s view of AVLA’s balance sheet strength. The strong assessment also recognizes shareholders’ willingness and strong track record of capital contributions to support AVLA’s growth. The last contribution occurred in 2023 for $1.9 million.
Negative rating action could occur if market conditions impact AVLA’s operating results or cause significant volatility in its underwriting metrics, particularly if the company’s capital position is impacted, reflecting sustained negative net results. Positive rating action could occur if AVLA is able to demonstrate a stable and upward trend in risk-adjusted capitalization, supported by sustained positive net results. Positive rating action could also occur if financial leverage at the parent level continues to improve, thereby relieving pressure on the holding company’s influence.
This press release refers to the ratings published on the AM Best website. For all other rating information relating to the relevant release and dissemination, including details of the office responsible for issuing each individual rating mentioned in this press release, please consult the website: Press release By AM Best. For more information on use and limitations For credit rating opinions, please see Best Credit Score GuideFor more information on the proper use of Best Credit Ratings, Best Performance Assessments, Best Initial Credit Assessments and AM Best news releases, visit Guidelines for the appropriate use of best ratings and reviews.
AM Best is a global credit rating agency, news and data provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, www.ambest.com.
Copyright © 2024 AM Best Rating Services, Inc. and/or its affiliates.
all rights reserved.
Contact information
Inger Rodriguez
Financial Analyst
+52 55 9085 6353
(email protected)
Christopher Sharkey
Deputy Director of Public Relations
+1 908 882 2310
(email protected)
Eli Sanchez
Director of Analytics
+52 55 9085 7503
(email protected)
Al Slavin
Senior Public Relations Strategist
+1 908 882 2318
(email protected)
[ad_2]
Source link
