AM Best Affirms Credit Rating of SPP Institución de Seguros S.A. de C.V.
AM Best has affirmed the Financial Strength Rating of B+ (Good), the Long-Term Issuer Credit Rating of “bbb-” (Good) and the Mexico National Scale Rating of “aa-.MX” (Superior) of SPP Institución de Seguros S.A. de C.V. (SPP Seguros) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is positive.
The ratings reflect SPP Seguros’ balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The positive rating outlooks reflect AM Best’s expectation that SPP Seguros will continue to expand its capital base while improving its balance sheet strength metrics, supported by profitable operating results, and with planned risk management as an essential part of that strategy.
The ratings also reflect the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), evidence of capital support from the main shareholder and prudent investment practices. Limiting SPP Seguros’ ratings is the inherent risk of a new company implementing its business plan, the expansion risk arising from its new property/casualty (P/C) segments, and the volatility of the prospective underwriting portfolio.
