A.M. Best Affirms and Assigns Ratings to ASSA Compania de Seguros, S.A.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and assigned an issuer credit rating of "a" to ASSA Compania 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 outlook for both ratings is stable. The ratings reflect ASSA Compania de Seguros, S.A.'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 presence in the Panama market. The company's 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 conservative investment portfolio have resulted in consistent profitable operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before and additions to surplus. The ratings also reflect the company's long-standing market presence and brand recognition. In operation for 25 years, ASSA Compania de Seguros, S.A. is one of the largest insurance companies in Panama, providing both life and non-life insurance products. The company has a market share of approximately 17.3% in Panama and approximately 6% 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. through its holding company, Grupo ASSA, S.A. ASSA Compania de Seguros, S.A. is the result of the merger of several insurance companies whose operations date back to 1937. Grupo ASSA, S.A. is publicly traded on the Panama stock exchange and provides ASSA Compania de Seguros, S.A. access to cross selling opportunities, strategic partnerships and capital. Partially offsetting these positive rating factors is ASSA Compania de Seguros, S.A.'s geographic concentration in Central America, which subjects it to economic and regulatory risk. Panama offers many opportunities for growth due to the expansion of the Panama Canal Panama Canal, waterway across the Isthmus of Panama, connecting the Atlantic (by way of the Caribbean Sea) and Pacific oceans, built by the United States (1904–14) on territory leased from the republic of Panama. and continued development of tourism; however, the other areas of Central America where ASSA Compania de Seguros, S.A. writes pose more of an obstacle, especially with regard to life products. In addition, ASSA Compania de Seguros, S.A. must comply with heavy regulation from Panamanian regulators regarding products, licenses, reserves, 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. , investments, capital and solvency margins. Furthermore, significant dividend payments have partially mitigated the organic growth in capital and surplus. 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. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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