AM Best has affirmed the Financial Strength Rating of C++ (Marginal), the Long-Term Issuer Credit Rating of "b+" and the Mexico National Scale Rating of "bbb.MX" of Aseguradora Patrimonial Vida S.A. (Patrimonial Vida) (Mexico). The outlook of these Credit Ratings (ratings) remains stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best's interactive rating process.
The ratings reflect Patrimonial Vida's balance sheet strength, which AM Best categorizes as weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Patrimonial Vida's balance sheet strength is underpinned by its risk-adjusted capitalization at a weak level, as measured by Best's Capital Adequacy Ratio (BCAR). The ratings also reflect the company's significant underwriting leverage, business profile limited by concentration in a single business line and distribution channel, and the company's relatively small size within Mexico's life insurance industry. Partially offsetting these factors are Patrimonial Vida's consistent profitability and well-structured reinsurance program.