Fitch Ratings Affirms Reaseguradora Patria's 'BBB' IFS Rating.Business Editors CHICAGO/MONTERREY--(BUSINESS WIRE)--Oct. 9, 2003 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 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 domestic scale insurer financial strength rating of 'AA(mex)' for Reaseguradora Patria, S.A. The affirmation of Patria's ratings, reflects the company's strong niche position in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. 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, particularly in Mexico; tight management of primarily short-tail underwriting risks, as well as liquidity and currency exposures; and better-than-average growth and profitability. Patria's capital position, provides adequate support for growth and risk exposures and its solvency margin was more than 5.0 times the local regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. at year-end 2002. Patria's underwriting results have been stronger than global peers even considering some medium-size catastrophes in the region, but in recent years have continued to move closer to global averages, primarily due to the increasing costs of retrocessionary protections. Offsetting factors include the company's relatively small size, and the uncertainty this places on its long-term competitive positioning; heightened price competition throughout the region, although the company has weathered the recent wave of consolidation of the Mexican market by foreigners Foreigners alienage the condition of being an alien. androlepsy Law. the seizure of foreign subjects to enforce a claim for justice or other right against their nation. gypsyologist, gipsyologist Rare. ; 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. As Patria's investment portfolio is primarily government bonds, asset quality improved with a sovereign rating upgrade in 2002, but a 'Brady-bond' refinancing in 2003 highlighted the company's exposure to interest rate risk. The company also has a higher exposure to equity holdings than its global peers. Fitch's ratings are based on an international rating scale and are fully comparable to other Fitch international ratings assigned globally. 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. Entity/Issue/Type Action Rating/Outlook Reaseguradora Patria, S.A. --Insurer financial strength (international scale) Affirmed 'BBB'/Stable. --Insurer financial strength (national scale) Affirmed 'AA(mex)'. Reaseguradora Patria Internacional, S.A. --Insurer financial strength (international scale) Affirmed 'BBB'/Stable. |
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