AM Best has affirmed the Financial Strength Rating of A+ (Superior), the Long-Term Issuer Credit Rating of 'aa-' and the Mexico National Scale Rating of 'aaa.MX' of
The outlook of these Credit Ratings (ratings) is stable.
Sompo Mexico is a subsidiary of
The ratings recognize Sompo Mexico's integration and support from SJ through SAIC, which provides synergies and operating efficiencies to the
Sompo Mexico initiated business in 1998; the company underwrites property/casualty business and stands as a strategic hub from which SJ plans to continue expanding operations into other
Sompo Mexico's risk-adjusted capitalization also is supported by the company's solid reinsurance program and small retention profile, as well as historical positive bottom-line results reflected in good profitability metrics and conservative profit retention policies. Sompo Mexico's strong underwriting results are mainly a consequence of underwriting referred business for the
In 2019, Sompo Mexico maintained its steady operating performance, which reflected in an average five-year combined ratio of 10.9% and return-on-equity of 14.4%. The company still benefits from being integrated into SJ, gaining operational leverage through the same systems, procedures and ERM practices.
Rating actions taken on SJ will most likely result in equivalent rating actions for Sompo Mexico, unless AM Best determines that the strategic importance of the
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
AM Best Ratings on a National Scale (Version
Evaluating Country Risk (Version
Understanding Universal BCAR (Version
Catastrophe Analysis in AM Best Ratings (Version
Available Capital & Holding Company Analysis (Version
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
This press release relates to rating(s) that have been published on AM Best's website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page.
AM Best does not validate or certify the information provided by the client in order to issue a credit rating.
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company's financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.
AM Best's credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.
AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
(C) 2020 Electronic News Publishing, source