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. (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ) (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' excellent capitalization, historically favorable operating profitability and its well established market presence as one of the leading insurance providers in the Panamanian market. These positive factors are derived from the company's profitable operating performance driven by favorable 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 and investment income. Going forward, continued expansion growth into Central 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. , as well as opportunities in new markets in Panama should provide CIS with additional diversification of income. The rating also reflects CIS' solid market presence, regional brand name and recognition as the oldest insurer in Panama with over 96 years of local market expertise. Partially offsetting these positive rating factors is CIS' geographic concentration in Panama, which subjects it to economic and regulatory risk. In addition, although overall underwriting results have been favorable, CIS has experienced recent underwriting losses in its auto, individual life, personal accident and health lines of business attributable to inadequate pricing, high claims and the competitive market conditions. However, for fiscal year 2005, CIS' auto and health lines of business improved as management implemented several corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or , which include rate increases, stricter underwriting guidelines, access to health providers network (BC/BS BC/BS Blue Cross and Blue Shield ) and non-renewal of unprofitable group accounts. Management will continue to monitor these corrective actions in those lines of business in order to seek profitability in the near future. 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. 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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