Fitch Affirms Reaseguradora Patria's Ratings.Business Editors Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. 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 international scale insurer financial strength ratings of Reaseguradora Patria PATRIA. The country; the men of the neighborhood competent to serve on a jury; a jury. This word is nearly synonymous with pais. (.q.v.) , S.A. (Patria) and its wholly owned Panamanian subsidiary Reaseguradora Patria Internacional, S.A. at 'BBB'. The Rating Outlook is Stable. Fitch Mexico, S.A. has affirmed the national scale insurer financial strength rating of 'AAmex' for Reaseguradora Patria, S.A. Fitch's ratings are based on an international rating scale and are fully comparable to other Fitch international ratings assigned globally. The ratings do not reflect foreign currency transfer risk. Fitch Mexico's rating is based on a local rating scale unique to Mexico and is not impacted by sovereign rating issues. It is comparable only to other national scale ratings in Mexico. The affirmation of Patria's ratings on both an international and national scale reflects the companies' strong niche position in the Mexican and Latin American 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. markets; tight management of 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. risks, liquidity and currency exposure, better-than-average profitability and growth and acceptable capital position. Underwriting results have generally been stronger than global reinsurance peers but in recent years are moving closer to global averages, primarily due to increasing costs of retrocessionary protections. Asset quality improved with the upgrade of Mexico's sovereign rating and the impact on government bond holdings but is still of somewhat high risk compared to global reinsurers because of higher than average holdings of common stocks. Offsetting factors include the company's relatively small size with the uncertainty this places on its long-term competitive positioning; heightened price competition; limited financial flexibility because of closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. ownership; higher-than-average exposures to property catastrophe losses and heavy reliance on retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. as a risk management tool. Entity/Issue/Type Action Rating/Outlook Reaseguradora Patria, S.A. --Insurer financial strength Affirmed 'BBB'/Stable. (international scale) --Insurer financial strength Affirmed 'AAmex' (national scale) Reaseguradora Patria Internacional, S.A. --Insurer financial strength Affirmed 'BBB'/Stable (international scale) |
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