A.M.Best has affirmed the Financial Strength Rating of B+ (Good), the Long-TermIssuer Credit Rating of "bbb-", and the Mexico National Scale Ratingof "a-.MX" of QuálitasCompañía de Seguros SA de CV (Qualitas) (Mexico City, Mexico). Theoutlook for these Credit Ratings (rating) is stable.

Therating affirmations reflect Qualitas' adequate risk-adjusted capitalization, asmeasured by Best's Capital Adequacy Ratio (BCAR), improved premium sufficiencyand profitability metrics, the company's consistent leading position in theauto insurance segment and strong distribution network. Partially offsettingthese positive rating factors are the company's elevated underwriting leverage,pressure on capitalization derived from important growth in 2016 and limiteddiversification in terms of business lines.

Qualitasoperates through a network of local agents, financial institutions and serviceoffices and has established a strong distribution capability throughout Mexico.This has enabled the company to maintain its leading market position in Mexico'sauto insurance segment in challenging competitive conditions, reaching a 31.5%market share.