A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good), the Long-Term Issuer Credit Rating to "a-" from "bbb+", and the Mexico National Scale Rating (NSR) to "aaa.MX" from "aa+.MX" of General de Seguros S.A.B. (Genseg) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Genseg’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect Genseg’s balance sheet strength that is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), improving underwriting results, consistent inflow of investment income, experienced management team and solid reinsurance program. The ratings also recognize Genseg’s affiliation and strategic importance to its ultimate parent, Peña Verde, S.A.B., a leading group in Mexico’s (re)insurance industry, which provides synergies and operating efficiencies. Partially offsetting these positive rating factors is the strong competitive landscape in its main business lines. Genseg initiated operations in Mexico City in 1970. The company mainly underwrites motor, agriculture and life insurance. The company ranked as Mexico’s 26th largest insurer in 2017 with a market share of 0.57%. Genseg operates with a network of independent agents, brokers and commercial offices throughout Mexico.