Fitch Ratings affirmed July 7 has affirmed Reaseguradora Patria S.A.B.'s international and nationalinsurer financial strength rating at A- and AAA(mex), respectively, with a stableoutlook.
Fitch said it based the ratings action on the reinsurer's balancesheet, operating performance and other key quantitative metrics historically outperformedby Patria compared to its competitors.
The rating agency also highlighted the company's corporate governanceand management, in addition to its wide product and market strategy.
"Patria is not dependent on retrocession but rather buysits retro protections to reduce volatility when market pricing is attractive. Thecompany's geographically diversified business profile, conservative underwritingand reserving policies allow the company to manage high retention levels,"Fitch said.
Nevertheless, the company's rating is constrained not only byits modest size compared to global reinsurance peers but also due to its above-averageexposure to variable income investments, Fitch noted.