A.M. Best Company

10/31/2024 | Press release | Distributed by Public on 10/31/2024 13:31

AM Best Affirms Credit Ratings of Aseguradora Agricola Comercial, S.A.

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OCTOBER 31, 2024 03:21 PM (EDT)

AM Best Affirms Credit Ratings of Aseguradora Agricola Comercial, S.A.

CONTACTS:

Juan Pablo Castro
Associate Financial Analyst
+52 55 1102 2720, ext. 133
[email protected]

Eli Sanchez
Director, Analytics
+52 55 1102 2720, ext. 122
[email protected]
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

FOR IMMEDIATE RELEASE

MEXICO CITY - OCTOBER 31, 2024 03:21 PM (EDT)
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of Aseguradora Agricola Comercial, S.A. (ACSA) (El Salvador). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ACSA's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

ACSA was founded in 1973 and has since been one of the most important insurance companies in El Salvador. The company underwrites non-life and life businesses, with its portfolio being concentrated primarily in fire and allied lines of business. In 2023, its market share was 13%.

ACSA's balance sheet strength assessment of very strong reflects its stability and constantly growing capital base, despite significant capital requirements driven by exposure to local investments and yearly dividend payments. ACSA's balance sheet is protected further by a responsible asset-liability management and a solid reinsurance program, composed of highly rated reinsurance companies.

AM Best assesses ACSA's operating performance as adequate given the company's record of positive net income results, sustained by stable and ongoing improvements to its technical ratios. ACSA has defined policies and procedures that are well-adhered to its risk tolerances, and it is performing corporate-level enhancements, which are attached to its ERM practices, all due to the company's investment in technology and professional development.

The stable outlooks reflect AM Best's expectation that ACSA will continue to implement its strategy successfully to maintain its profitable results and very strong balance sheet strength.

Positive rating actions could occur if ACSA's operating performance steadily improves in the medium term, while maintaining prudent capital management. Conversely, negative rating actions could take place if there are shortfalls in the company's implementation of its strategy deriving in a weakening of its operating performance or balance sheet strength.

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:


  • Evaluating Country Risk (Version June 6, 2024)

  • Understanding Global BCAR (Version Aug. 1, 2024)

  • Catastrophe Analysis in A.M. Best Ratings (Version Feb. 8, 2024)

  • Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024)

  • 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: Oct. 18, 2023

  • Initial Rating Date: Oct. 18, 2023

  • Date Range of Financial Data Used: Dec. 31, 2019 - June 30, 2024

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

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. AM Best keeps certain activities of its business units separate from each other to preserve the independence and objectivity of their respective activities. As a result, certain business units of AM Best may have information that is not available to other AM Best business units. AM Best has established policies and procedures to maintain the confidentiality of certain confidential (non-public) information received in connection with each analytical process. 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.