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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Aserta Seguros Vida, S.A. de C.V., Grupo Financiero Aserta

November 14, 2019


AM Best has affirmed the Financial Strength Rating (FSR) of B++ (Good), the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” and the Mexico National Scale Rating of “aa+.MX” of Aserta Seguros Vida, S.A. de C.V., Grupo Financiero Aserta (ASV) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect ASV’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The ratings reflect ASV’s integration into Grupo Financiero Aserta, S.A. de C.V. (GFA) in terms of operations, capital support, business infrastructure and ERM. Mitigating these positive factors are the challenges associated with being a newer company and volatility in bottom-line results that are inherent in a recently created life insurer.

ASV started operations in 2012, focusing on life microinsurance, group life and accident and health insurance. In 2013, GFA acquired a majority stake in the company and subsequently received regulatory approval for ASV to become a member of the financial group. As of June 2019, group life insurance business composed 99.49% of the ASV’s business portfolio with accident and health accounting for 0.50%, and individual life for the remaining 0.01%. ASV ranked as the 20th largest insurer in Mexico’s life segment based on gross written premium, with a market share of less than 1%, as of June 2019.

During 2018, ASV registered significant growth, which was in line with its projections, and adhered to the measures adopted by the company in 2017 to improve its underwriting quality. The company was able to maintain a stable loss ratio, and achieved premium sufficiency. Growth allowed the company to mitigate administrative expenses, driving a positive bottom line result of MXN 10.8 million.

As of June 2019, ASV has achieved 50% of its projected growth, and estimates to close 2019 with a combined ratio similar to that of 2018. The company plans to stabilize growth for the coming years.

Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, reflecting the capital support from its parent. The last capital contribution took place in 2017, in order to offset the net loss. In 2018, there were no capital contributions nor dividend payouts; the latter, coupled with positive bottom line results, allowed the company’s capital to grow.

Going forward, AM Best expects ASV to stabilize its results and underwriting in the medium term and to keep expanding its distribution network to achieve a larger scale. Positive rating actions may occur if the company is able to improve its operating performance and capitalization while achieving a larger scale of business. Negative rating actions could occur if GFA’s support diminishes in AM Best’s view or if operating performance deteriorates and capital erodes significantly.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. 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 provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Inger Rodriguez

Associate Financial Analyst

+52 55 1102 2720, ext. 108

inger.rodriguez@ambest.com Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com Alfonso Novelo

Senior Director, Analytics

+52 55 1102 2720 ext. 107

alfonso.novelo@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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