AM Best Affirms Credit Rating of Atradius Seguros de Crédito, SA

[ad_1]

MEXICO CITY–(BUSINESS WIRE)–optimal The Financial Strength Rating (FSR) of A (Excellent), the Long-Term Issuer Credit Rating (ICR) of ‘a+’ (Excellent), and the National Size Rating (NSR) of Mexico of ‘aaa.MX’ have been affirmed for Atradius Seguros de Crédito, SA (Atradius México) (Mexico City, Mexico). The outlook for these credit ratings is stable.

Atradius México’s ratings reflect its balance sheet strength, assessed as very strong by AM Best, as well as strong operating performance, good business profile and adequate comprehensive risk management (ERM).

Atradius México’s ratings also reflect its strategic importance to the Android Group due to its leading position in credit insurance in Mexico, its importance as a gateway to the Latin American insurance market, its good financial flexibility due to its strong capitalization, reinsurance support from the Aradius Group and its experienced management team. These positive rating factors are partially offset by the inherent volatility of the credit insurance market.

Atradius Mexico benefits from its integration with the Atradius Group, with operations based on the same practices and procedures, reinsurance programs, liquidity facilities and underwriting standards. In addition, ERM practices show a high degree of integration with Atradius NV

Atradius México provides credit insurance in the Mexican market and is the country’s largest credit insurance company in 2023, with a 39% market share.

Atradius Mexico’s financial performance in 2023 remains strong in response to challenging market conditions, thanks to good underwriting practices and expense control. These practices are reflected in a return on capital employed of 7.7%. AM Best expects the company’s profitability to continue and is primarily based on its strong operating practices and consistent financial products.

AM Best considers Atradius Mexico’s risk-adjusted capital to be at its strongest level, based on the Best Capital Adequacy Ratio (BCAR). The company maintains ample financial flexibility, as its portfolio is concentrated in short-term fixed-income instruments and matched to the U.S. dollar currency. In addition, the Atradius Group has demonstrated support for Atradius México through a reinsurance program with Atradius Crédito y Caución, SA de Seguros y Reaseguros, a group entity that merged with the former reinsurer Atradius Reinsurance Designated Activity Company.

Positive rating action on Android’s major operating subsidiaries could lead to a change in Atradius México’s ratings as a result of changes in key rating fundamentals of Atradius NV’s parent, Grupo Catalana Occidente, SA. Similarly, negative rating action on the Atradius group would reflect the same action if it resulted from a sustained decline in operating performance or a sustained material deterioration in Atradius NV’s consolidated risk-adjusted capitalization.

A change in AM Best’s perception of Android Mexico’s current or perceived strategic importance to the Android Group of companies could also affect the company’s ratings.

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 Author: AM Best. For more information on the use and limitations of credit rating opinions, 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.

Contact information

Juan Pablo Castro
Assistant Financial Analyst
+52 55 1102 2720, International calls 133
(email protected)

Eli Sanchez
Director of Analytics
+52 55 1102 2720, International calls 122
(email protected)

Christopher Sharkey
Deputy Director of Public Relations
+1 908 882 2310
(email protected)

Al Slavin
Senior Public Relations Strategist
+1 908 882 2318
(email protected)

[ad_2]

Source link