AM Best Affirms Credit Ratings of Seguros Reservas S.A.
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Seguros Reservas S.A. (Seguros Reservas) (Santo Domingo, Dominican Republic). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Seguros Reservas’ balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Seguros Reservas’ balance sheet strength is underpinned by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also reflect its strong operating performance, driven by consistent profitability, which comes from a diversified book of business, as well as contained underwriting leverage and the company’s affiliation with Banco de Reservas de la República Dominicana, Banco de Servicios Múltiples (Banco de Reservas), the largest bank in the Dominican Republic.
Partially offsetting these positive rating factors is the strong competition in the Dominican Republic’s insurance market, which AM Best believes could pressure Seguros Reservas’ profitability and market share, along with the company’s high dividend payout ratios and an ERM framework that has room for further sophistication.
