S&P Global Ratings on Oct. 9 affirmed Seguros Atlas SA's mxAAA national financial strength and counterparty credit ratings while maintaining the stable outlook.
The ratings reflect the insurer's adequate competitive position and sound financial risk profile. S&P believes the company maintains its operating performance at higher levels compared to other multiline insurers that operate in the Mexican market. This reflects good underwriting discipline and moderate growth in line with the insurer's risk appetite and profitability expectations.
The insurer also shows very strong capitalization levels, S&P said. However, its financial risk profile is partially limited by its adjusted total capital base of less than $1 billion.
In addition, the insurer displays adequate risk management and maintains good levels of liquidity, as a result of proper business management and corporate governance, the rating agency noted.
The stable outlook reflects the expected maintenance of the company's high capital level through profit generation from a good operating performance and the continuity in the level of dividends paid.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.