A.M. Best Affirms Rating of Afianzadora Insurgentes, S.A.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 28, 2002 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Afianzadora Insurgentes, S.A. de C.V. (AISA AISA Afghanistan Investment Support Agency AISA Africa Institute of South Africa AISA Association of International Schools in Africa (Nairobi, Kenya) AISA American Indian Student Association AISA Alabama Independent School Association ) (Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , Mexico) and assigned it a stable outlook. The rating reflects the company's strong balance sheet, improved 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. performance, prudent capitalization and lead position in the Mexican surety market. AISA is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Companies. The rating recognizes the benefits AISA receives from its ultimate parent, including financial support, underwriting and risk control expertise. Financial results have improved, and profitability is returning to historical levels as the company tightens risk selection and discontinues certain unprofitable lines of business. AISA's investment portfolio remains conservative and consists of relatively safe liquid instruments such as government securities and corporate bonds as it seeks to achieve stable, low-risk return on investments. A.M. Best believes its current capital position is more than adequate to support operations over the short to medium term. Offsetting these factors is AISA's high expense structure and the uncertainty of the local surety market, which has contracted recently due to a stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. construction industry. However, being the largest surety insurer in Mexico, AISA could benefit from the consolidation of local markets, as business would concentrate into companies with strong financial flexibility. Furthermore, the company is streamlining its operations to improve efficiency, which should further reduce its expense ratio in the coming years. 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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