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Fitch affirms ratings of El Salvador-based insurer Aseguradora Agricola Comercial

FitchRatings on Sept. 28 affirmed the long-term insurance financial strength ratingof Aseguradora Agricola ComercialSA at A+(slv).

Therating agency also affirmed the insurer's issuer rating on the regulatory scaleof El Salvador at EA+(slv). Both ratings have a stable outlook.

Theratings reflect the insurer's important position in the local insurance market,with 12% of total written premiums as of June 2016, as well as its improvingcapitalization and adequate liquidity levels, Fitch said.

Thefirm's solid market share is based mainly on large accounts with theintermediation of brokerages, Fitch said. However, the concentration of itsportfolio in a few large clients could be improved through greaterdiversification, the agency noted. Additionally, the insurer's conservative investment strategyand reserves mean it has adequate liquidity coverage, although levels are lowerthan average for the market, Fitch said.

Higherclaims rates, mainly in the auto, debt and health insurance areas, have thefirm's profitability in the first half of 2016 but its technical performanceremains strong, partly due to its good operating efficiency and the good resultsof its investments, Fitch noted.