Fitch Ratings on May 14 raised the insurer financial strength rating of Guatemala-based Aseguradora de los Trabajadores SA to BBB+(gtm) from BBB(gtm), while revising the outlook to positive from stable.
The ratings upgrade is based on the group support approach in which Fitch recognizes Banco de los Trabajadores as the entity responsible for any equity issues of subsidiary Aseguradora de los Trabajadores. Fitch also points out the importance of the insurer within the group's strategy since it is highly integrated and shares commercial and operational synergies with its parent.
Aseguradora de los Trabajadores registered an average growth of 19% in premiums over the last five years, which is superior to the market average over the same period, Fitch said. The insurer maintains a small market share but is one of the most profitable in Guatemala due to its good technical performance.
The company also exhibits high internal capital generation capacity and its liquidity position benefits from the conservative investment policy of its reserves and capital.