A.M. Best Affirms Rating of Afianzadora Insurgentes SA de C.V.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Afianzadora Insurgentes SA de C.V. (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) (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 ). The rating outlook is stable. The rating reflects AISA's strengthened capitalization, disciplined underwriting program and significant market share of Mexican surety business. The rating also recognizes the benefits AISA receives from its ultimate parent, 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 Travelers Companies The Travelers Companies (NYSE: TRV) is the second largest underwriter of commercial property casualty and personal insurance in the United States. The company is headquartered in St. Paul, Minnesota and has major operations in Hartford, Connecticut. , Inc. (St. Paul Travelers) (St. Paul, MN), which includes both financial as well as underwriting and risk control support. AISA management anticipates operating performance to improve through newly established risk selection procedures and the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain unprofitable lines of business. In addition, the company has undertaken significant restructuring efforts to lower its expense ratio and has shifted its business strategy from seeking increased market share to improving operating performance. AISA's balance sheet is well supported by a conservative investment portfolio, which consists of relatively safe, liquid instruments such as government securities and higher quality corporate bonds. AISA investment strategy is to achieve a stable, low-risk return on investments to support its loss reserve position. Risk-based capitalization has improved, as the company has received both a substantial capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. protection from its parent company. Offsetting these factors is AISA's substantial reserve strengthening charge in 2004 for adverse development in surety lines of business. Furthermore, the company has historically experienced volatility in operating results due to both claim payments and a relatively high expense structure. For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit http://www.ambest.com/pc. 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 http://www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion