A.M. Best Affirms Rating of Compania Internacional de Seguros, S.A.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) of Compania Internacional de Seguros, S.A. (Panama City Panama City, city (1990 pop. 34,378), seat of Bay co., NW Fla., on St. Andrews Bay; inc. 1909. A Gulf Coast resort with amusement parks and excellent fishing, it is also a port of entry. The city's industries produce paper, clothing, and chemicals. , Panama). The rating outlook is stable. The rating reflects CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S solid capitalization, historically favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating profitability and its well established market presence as one of the leading insurance providers in the Panamanian market. These positive factors are attributable to management's commitment to effective control systems and its focus on operating results. In existence for over 95 years, CIS is the oldest insurer in Panama and one of the top three market leaders in the country. Utilizing its regional brand recognition and reputation, CIS continues to seek opportunities in new markets through strategic alliances, which have provided additional insurance opportunities in Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Currently, CIS has completed the process of upgrading its 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. , financial, information and administrative systems, which should further enhance its competitive position. Partially offsetting these positive rating factors are CIS' geographic concentration in Panama, which subjects it to the country's economic and regulatory risk. In addition, CIS has experienced underwriting losses in its auto and health lines of business primarily attributable to higher than anticipated frequency and severity in claims. CIS management has undertaken measures to address the situation including rate increase and tighter policy terms. This challenges the company to maintain its business position and requires the continued enhancement of marketing strategies through the development of new and attractive products. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit 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 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 www.ambest.com. |
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