A.M. Best has affirmed the Financial Strength Rating of A- (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" and the Mexico National Scale Rating of "aaa.MX" of QBE De México Compañía De Seguros S. A. De C. V. (QBE de Mexico) (Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect QBE de Mexico's balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
QBE de Mexico's balance sheet strength is underpinned by a risk-adjusted capitalization at strongest levels, as measured by Best's Capital Adequacy Ratio (BCAR), also supported by a well-balanced reinsurance program backed by QBE Group subsidiaries and a continued conservative investment strategy. The ratings also recognize QBE de Mexico's affiliation and strategic importance to its ultimate parent, QBE Insurance Group Limited, a leading property/casualty (P/C) insurer in Australia and worldwide, through QBE Latin America Insurance Holdings, S.L., which provides synergies and operating efficiencies. Offsetting these positive rating factors are the company's relatively small size within Mexico's very competitive P/C segment and the continued volatility in its operating results recently affected mainly by run-off businesses assigned by the group coupled with a rise in acquisition expenses.
Source: A.M. Best Ratings Services, Inc. Used under license.
