Fitch Ratings on March 28 affirmed the national scale insurance financial strength ratings of Aseguradora Suiza Salvadoreña SA Asesuisa and unit Asesuisa Vida SA at AA+(slv), with a stable outlook.
The action on the entities was based on the available implicit partial support, if required, by their shareholder Seguros Generales Suramericana SA due to their importance as subsidiaries.
Fitch noted that Aseguradora Suiza Salvadoreña's market share declined to 16.3% in year-end 2016 from 19.3% because it did not renew the coverage of disability and survival risks for Administradora de Fondos de Pensiones Crecer SA, which was an important premium flow. "Favorable developments will depend on the insurer's ability to strengthen growth directly and through channels as intermediaries," Fitch said.
For Asesuisa Vida, the action also considers the favorable trend in the entity's credit profile, although it also reflects its insurance cost structrue and leverage levels, which remain above the market average.