A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-", and the Mexico National Scale Rating of "aaa.MX" of El Aguila, Compania de Seguros, S.A. de C.V. (El Aguila) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect El Aguila's balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, neutral business profile and adequate enterprise risk management.
The ratings also reflect El Aguila's support from its parent company, Great American Insurance Company, which currently has an FSR of A+ (Superior) and a Long-Term ICR of "aa-", each with a stable outlook, and improvements in El Aguila's underwriting quality. Offsetting these positive rating factors are the company's low levels of profitability and investment yield when compared with the average performance indicators in Mexico's insurance segment, and the company's relatively small size.
Source: A.M. Best Ratings Services, Inc. Used under license.
