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Fitch affirms Aseguradora del Istmo's rating, maintains stable outlook

Fitch Ratings on Aug. 8 affirmed the national rating of Costa Rican insurer Aseguradora del Istmo (ADISA) SA at A+(cri) and maintained its stable outlook.

The rating reflects the company's intrinsic performance, its successful business model, which have resulted in competitive advantages with a positive growth dynamic, followed by an adequate internal generation of resources, Fitch said.

In June, ADISA's stock ownership changed through the transfer of 76% of its shares to Panama-based Compañía Internacional de Seguros. Fitch said the move was neutral to the rating. Costa Rican cooperative Coopenae owns the remaining 24% of ADISA's shares. The successful experience and trajectory of both companies only reinforce the Costa Rican insurer, the agency noted.

ADISA's ample knowledge of the niche insurance business in Costa Rica, as well as its sustained premium growth for the past few years, act as a competitive advantage for the company, the rating agency noted. Fitch expects ADISA's short-term performance and growth to remain stable and even grow midterm due to its expansion strategies.

The company's focus on life insurance products and portfolio maturity have increased debt equity ratios during the past few years, Fitch noted, adding that it expects this trend to normalize thanks to internal generation of resources and a capital strengthening policy.