Moody's on Dec. 19 affirmed 19 Cia. de Seguros y Reaseguros Fortalez SA, or Fortaleza Seguros, and Compañía de Seguros de Vida Fortaleza S.A.'s, or Fortaleza Vida, global local currency insurance financial strength ratings at B2 and their Bolivian national scale ratings at A3.bo.

It also revised its outlook on both companies' national scale insurance financial strength ratings to negative from stable. Meanwhile, the outlook on the currency insurance ratings remains stable.

The outlook revision on Fortaleza Seguros reflects a decline in the company's investment returns that contributed to an annualized negative return on capital of 8.4% for the first nine months of 2016. Moody's notes the company's profitability has been hurt by a higher concentration of U.S. dollar-denominated securities during 2016 and very low market interest rates in Bolivia.

The outlook revision on Fortaleza Vida reflects its integration and synergies with Fortaleza Seguros.