A.M. Best Affirms Ratings of ASSA Compania de Seguros, S.A.OLDWICK, N.J -- 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 financial strength rating of A (Excellent) of ASSA Compania de Seguros, S.A. (ASSA) (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 ASSA'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 well established market presence as one of the leading insurance providers in the Panamanian market. The rating also reflects the company's disciplined 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. philosophy, strong control systems and conservative investment portfolio. In addition, the rating recognizes the company's favorable non-life loss ratio trends over the past five years; its well diversified and innovative product offering and the financial flexibility provided by its public-traded parent, Grupo ASSA, S.A. ASSA continues its thoughtful expansion plans into the Central American Central America A region of southern North America extending from the southern border of Mexico to the northern border of Colombia. It separates the Caribbean Sea from the Pacific Ocean and is linked to South America by the Isthmus of Panama. market with strategic product offerings that provide growth opportunities into new markets. In addition, ASSA's balance sheet is protected by a comprehensive 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. program provided by highly rated entities. Partially offsetting these positive rating factors are the company's geographic concentration in Panama and unfavorable underwriting results in its core health lines of business. These results are attributed to higher than anticipated frequency and severity in claims. ASSA's management has quickly undertaken measures to address the situation, including rate increases and tighter policy terms. However, A.M. Best believes ASSA's strong non-life operating trends, new life initiatives and the development of alternative distribution channels leave the company well positioned to sustain earnings. 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. 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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