trending Market Intelligence /marketintelligence/en/news-insights/trending/bWyMt4ZCHgybLcAjLAJXGQ2 content esgSubNav
In This List

Moody's revises outlook on Fortaleza Seguros to negative

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


Moody's revises outlook on Fortaleza Seguros to negative

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.