Fitch Ratings on July 27 raised its financial strength rating on Dominican Republic-based Seguros Sura to A+(dom) from A(dom), with a stable outlook.

The upgrade reflects the company's "continuous improvement on all fronts," Fitch said, adding that the insurer's profitability indicators are now "far superior" compared to historical levels and are also above the industry average.

Furthermore, Seguros Sura's management has adopted a conservative capital policy that has allowed it to maintain an adequate leverage position compared to peers.

According to Fitch, the insurer would receive implicit support from majority shareholder Suramericana SA if needed, a view that is incorporated in the unit's financial strength rating. Unlike other insurers in the Dominican Republic, Seguros Sura is not exposed to risky assets, which gives it greater financial flexibility to cope with stress scenarios, Fitch said.

The rating agency expects Seguros Sura to continue improving its profitability in the medium term.