A.M. Best Upgrades Rating of ASSA Compania de Seguros, S.A.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 2, 2003 A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of ASSA Compania de Seguros, S.A. (Panama). The rating outlook is stable. The rating is based on ASSA's excellent level of 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. , consistently strong operating results, solid returns on revenue and its dominant position in the Panamanian marketplace. 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. approach and innovative product offerings. ASSA's operating guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , prudent underwriting and conservative investment portfolio have enabled it to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. most of its regional peers. 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. Offsetting these positive rating factors are the company's geographic concentration in Panama and recently unfavorable underwriting results in its core life lines of business. These results are attributed to price competition, increased claim levels and a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the Panamanian economy over the last two years. Additionally, the local insurance market has become highly competitive with the consolidation of some local insurers offering new challenges for ASSA to sustain its market share. However, A.M. Best believes that ASSA's outstanding capitalization levels and management capabilities enable it to take advantage of opportunities within its key market segments as they arise through strategic alliances. 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion