A.M. Best has assigned a Financial Strength Rating of A- (Excellent), a Long-Term Issuer Credit Rating of "a-" and the Mexico National Scale Rating of "aaa.MX" to Stewart Title Guaranty de Mexico SA de CV (STGM) (Mexico). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect STGM's balance sheet strength, which A.M. Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. Offsetting these positive factors are the company's small size in Mexico's insurance industry and its concentration in a single line of business.
STGM is a subsidiary of Stewart Title Guaranty Company (STGC), located in Houston, Texas. Through its subsidiaries, STGC offers its products, in addition to Mexico, in the United States, the European Union, Australia, Costa Rica and China. Given the specialized nature of the title product and the institutional strategy, STGM's sales efforts are focused on business referred by the parent company on existing customers, which generates a reduced number of policies per year in a Mexican market consisting of just two participants.
Source: A.M. Best Ratings Services, Inc. Used under license.