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Fitch affirms ratings of Grupo Financiero Inbursa insurance subsidiaries; outlook stable

FitchRatings on April 26 affirmed the national ratings of Grupo Financiero Inbursa S.A.B. de C.V.'s subsidiaries , and at AAA(mex).

Fitchalso affirmed Seguros Inbursa's local currency financial strength rating at BBB+.The outlook for the ratings remains stable.

The ratingsof all three companies are based on explicit support from Grupo Financiero Inbursa,which, if required, would grant unlimited support for its subsidiaries' losses,Fitch said, adding the group's credit quality is similar to its banking unit, , which is ratedBBB+ by Fitch with a stable outlook.

As forSeguros Inbursa, the affirmation also reflects the importance of the company withinthe financial group, considering its contribution to the group's income, as wellas the high level of management and operational integration with the parent.

"SegurosInbursa has sufficient equity in addition to technical reserves to meet its obligationsto policyholders in the event of unexpected deviations in various risks," Fitchsaid, adding the company's operating leverage ratio has remained stable.

SegurosInbursa is the eighth-largest insurer in Mexico, with a market share of 5% in termsof premiums as of September 2015, Fitch noted.

For itspart, Fianzas Inbursa had a 20.8% share of premiums in the local sureties marketas of September 2015.

"Itscompetitive position is strong and it benefits from commercial synergies generatedwithin the group," Fitch said, adding its profitability is adequate.

However,Fitch expects to see volatility in its capital and leverage indicators during 2016due to the implementation of a new regulatory framework in Mexico, mainly relatedto new technical reserve requirements for insurers.

Finally,Pensiones Inbursa is fifth among Mexican pension insurers with a market share of0.13% as of September 2015, Fitch said. However, due to changes in capital marketconditions and new regulations, the company has not seen new income since 2008 andhas focused on growth through changes in the families of its existing clients.

Althoughthe firm's profitability is high due to the good performance of its investmentsportfolio, its strategy based on managing existing business means its growth outlookis limited, Fitch noted.