Fitch on Dec. 7 affirmed the AAA(col) national ratings of Liberty Seguros SA and Liberty Seguros De Vida SA.
The affirmation considers the partial benefit of support from the entities' parent, Liberty Mutual Group Inc. Fitch views the Colombian units as important for the operation of the group in the region, reflected in their commercial identification, a considerable level of integration and technical and reinsurance support between the entities.
Recurring capital injections to Liberty Seguros resulted in an improvement in the company's leverage and capitalization indicators, Fitch said. In addition, the rating reflects the positive trend in the technical performance of the unit's business, although challenges persist in terms of growth and profitability, considering the strategic refocusing of its administration.
Meanwhile, Liberty Seguros De Vida's rating considers its favorable loss levels as well as its adequate levels of leverage, reserves and liquidity. It also reflects the good quality of the entity's reinsurance program. However, the entity maintained efficiency indicators that compare unfavorably with the market average.
