Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 31 n° 301

Posts Tagged ‘fianzas’

AM Best Affirms Credit Ratings of Berkley International Fianzas Mexico S.A.

Posted by fidest press agency su domenica, 12 maggio 2019

AM Best has affirmed the Financial Strength Rating of A+ (Superior), the Long-Term Issuer Credit Rating of “aa-” and the Mexico National Scale Rating of “aaa.MX” of Berkley International Fianzas Mexico S.A. (BFM) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.BFM is a member of W. R. Berkley Insurance Group (Berkley Group), which on a consolidated basis, has a balance sheet strength that AM Best categorizes as strongest, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM).The ratings reflect BFM’s substantial reinsurance support from its group through the Berkley Insurance Company. Additionally, the ratings factor in BFM’s integration with its parent company, W. R. Berkley Corporation (W. R. Berkley), in terms of underwriting, ERM and capital commitments. Limiting the ratings is the inherent risk of a startup company implementing its business plan and the potential for volatility in Mexico’s economy during 2019.BFM was formed in November 2016, and is the Mexico surety subsidiary of W. R. Berkley. The company received regulatory approval for operations in June 2017 and issued its first policy that same month. The company plans to develop a regional presence in northwest Mexico, through a predominant mix of administrative surety, and a lesser portion of credit and judicial products strongly backed by a comprehensive reinsurance contract with its parent company.BFM’s solid risk-adjusted capitalization is derived from its strong capital position in support of its premium growth during its first years of operation, which is strengthened further by the comprehensive reinsurance contract with its parent company. Furthermore, AM Best recognizes W. R. Berkley’s commitment to its subsidiaries providing additional capital fungibility to the Mexico operation.As a recently formed company, BFM will have to produce sufficient volume to compensate for its fixed costs, while posting adequate underwriting performance on its retained premium. While the BFM management and underwriting team have a successful track record, the business plan implementation has to evolve for AM Best to evaluate the company’s operating performance adequately.While the company has an experienced team of underwriters, achieving an adequate premium volume might prove more challenging than anticipated. This is due to uncertainty with regard to the new federal government’s spending on infrastructure, which could diminish and impact surety sector growth in the coming years and potentially limit the company’s growth prospects.If positive rating actions are taken on the main operating subsidiaries of the Berkley Group for substantial and sustained improvement in operating performance results relative to their peers, BFM’s ratings likely would move in tandem. Conversely, if negative rating actions are taken on the Berkley Group as a result of a sustained deterioration in the group’s underwriting or operating results, BFM’s ratings would mirror those same actions. Negative rating action also could be driven by accident year results or adverse development of prior years’ loss reserves at the parent level, or result from a change in the financial position of the group’s holding company that prompts the withdrawal of capital from the group or causes an increase in financial leverage or decline in interest coverage at the holding company that is not supportive of the current ratings.

Posted in Estero/world news | Contrassegnato da tag: , , | Leave a Comment »