|[February 14, 2013]
A.M. Best Upgrades Ratings of Compania Internacional de Seguros, S.A.
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has upgraded the financial strength rating to A
(Excellent) from A- (Excellent) and issuer credit rating to "a" from
"a-" of Compania Internacional de Seguros, S.A. (CIS) (Panama).
The outlook for both ratings is stable.
The rating upgrades are based on CIS' historical operating performance,
excellent risk-based capitalization and strong market profile. As one of
the largest insurers in Panama, CIS utilizes its solid risk management
procedures and local market expertise to enhance its operating
performance. Strong underwriting results are complemented by consistent
levels of investment income derived from a conservative investment
portfolio. These factors have allowed CIS to enhance its surplus
considerably in recent years.
Additionally, from an underwriting perspective, both property/casualty
and life/health business segments have been generally profitable in
recent years. CIS also maintains liquidity and solvency margins in
excess of the requirementof the Panamanian Superintendent of Insurance.
Partially offsetting these positive rating factors are the challenges
CIS faces operating in a relatively limited and competitive insurance
market, as well as in a country that A.M. Best considers to have an
elevated level of country risk.
While A.M. Best considers CIS well positioned at its current rating
level, factors that may lead to negative rating actions include
protracted adverse underwriting and overall performance, a significant
deterioration in its risk-adjusted capitalization or a downgrade in the
Panama country risk tier rating.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: "Risk
Management and the Rating Process for Insurance Companies"; "Evaluating
Country Risk"; "Understanding BCAR for Property/Casualty Insurers";
"Understanding Universal BCAR"; and "Catastrophe Analysis in A.M. Best
Ratings." Best's Credit Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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