A.M. Best Affirms A Rating Of Seguros Inbursa S.A.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 13, 2000 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the A (Excellent) financial strength rating of Seguros Inbursa S.A., Mexico, D.F. with a stable outlook. The rating reflects the company's solid capital position, liquid investment portfolio, leading market profile and distribution capabilities. The rating also reflects the company's excellent financial performance in the Mexican insurance Mexican insurance provides coverage for tourists when they are driving in the Republic of Mexico. This type of insurance was created because U.S. insurance policies are not recognized by authorities in Mexico in the event of an accident. market, the result of its experienced management team and effective operating strategies. Based on MX $5.8 billion in gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. , Inbursa is the third largest insurer in Mexico with a market share of over 7%. It underwrites mostly short-tail property insurance, life/health and non-life coverages using synergies in its related parties for product distribution along with agents and brokers. Inbursa has increased its life/health and pension business by 47% and 45% respectively in real terms, versus prior year. Inbursa has consistently sustained its revenue growth and market position, achieving excellent capital and solvency levels over the last five years. The company maintains favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. through retention of earnings, new insurance product development and a superior investment strategy. Recent underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results show improvement when compared to the prior year. The company is the most profitable insurers in the market, with returns on adjusted equity and average surplus at 12% and 15% respectively for 1999. The company has a liquid investment portfolio to back its technical and contingency reserves. On a risk-adjusted basis, Inbursa's A.M. Best Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ) is excellent. The company has continuously improved its combined ratio over the five-year review period, improving it 9% in 1999 over 1998. The decrease in loss ratio accounts for 7% of this improvement, demonstrating its strict underwriting approach and focus on low operating costs operating costs npl → gastos mpl operacionales . A.M Best expects the company to improve leverage levels of net-premiums-written-to-adjusted-policyholder-surplus ratios, currently in the 1.5 range. Furthermore, A.M. Best believes the new life/health lines and business plan project realistic volume and capital levels to support Inbursa's insurance operations over the short- to medium-term. Offsetting these strengths is the uncertainty of the local market's growth potential, as well as its volatility. While Mexico has recently shown an overall economic improvement, there are still concerns of a downturn on the current positive indicators. Also there are additional challenges for Seguros Inbursa to increase and sustain its market share, especially in new lines and with the increased presence of foreign insurers in the market. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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