Fitch Ratings on Dec. 21 affirmed the national scale rating of Deco Seguros SA de CV at BB-(mex), with a stable outlook.
The rating is based on the insurer's intrinsic financial profile, since it operates within a family of non-insurance companies. In addition, there are no legal contracts that compel the parent to provide support among group members, Fitch said.
However, the capitalization received by Deco Seguros from the end of 2012 to December 2016 allowed it to compensate for accumulated net losses it achieved, Fitch said. It also managed to maintain a leverage indicator below the average market leverage for the period.
The insurer faces the challenge of generating internal capital resources to strengthen its capital base on its own, Fitch said.