A.M. Best Assigns Rating to Fianzas Comercial America.Business Editors/Insurance Writers OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 13, 2000 A.M. Best Co. has assigned a financial strength rating of A (Excellent) to Fianzas Comercial America, Mexico, D.F. The rating reflects the company's excellent 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. performance, strong profitability and conservative capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. . The group rating recognizes Fianzas' affiliation to Seguros Comercial America (SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. ), the largest Insurance company in Mexico, as well as its integrated operations. Fianzas is a fully owned subsidiary of SCA, which is part of a joint venture with the ING Group ING Groep N.V. (NYSE: ING, Euronext: INGA) (known as ING Group) is a financial institution of Dutch origin offering banking, insurance and asset management services. ING once stood for Internationale Nederlanden Groep. of the Netherlands through its Parent Grupo Savia, each sharing approximately 41% and 43% ownership of the company respectively. Fianzas is well positioned to take advantage of its close relationship with SCA and ING's network. The company has 31 offices and 1,310 registered agents throughout Mexico. The company's underwriting performance has been excellent, showing consistent underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. in the last 5 years with excellent returns on premium and equity. The company adopts a strict underwriting policy, with priority given to the quality of business rather than volume. Its business is spread into many policies with small amounts insured to minimize the concentration of risk. In addition, the company maintains excellent capitalization with a net premiums written to surplus ratio of 0.5 as of December 31, 1999. The capital and surplus have significantly increased by 871% from 1994, reaching MXP MXP In currencies, this is the abbreviation for the Mexican Peso. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 179 million at the year-end 1999. Offsetting these positive factors are the decrease in the company's investment income, the company's growing but still small share of the domestic surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. market and the volatility of the Mexican economy, which, although improving, is exposed to various external factors. 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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