AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of El Aguila, Compañia de Seguros, S.A. de C.V. (El Aguila) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

These ratings reflect El Aguila’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect El Aguila’s support from its parent company (including continuous capital contributions), Great American Insurance Company, which currently has an FSR of A+ (Superior) and a Long-Term ICR of “aa-” (Superior), each with a stable outlook.

El Aguila was established in Mexico in 1994 and is a wholly owned subsidiary of Great American Insurance Company. Since 2016, El Aguila has diversified into other property/casualty lines besides the motor business, targeting small- and medium-size enterprises in the commercial segment through an independent network of local distribution partners. Given its small size, the company shows a greater geographic concentration than its peers, making it more vulnerable to market conditions in its main regional markets within Mexico.

The company focuses on having higher renewal rates than those registered by its main peers, making heavy investments in advertising and direct sales channels in comparison with traditional distribution in Mexico’s auto insurance segment, which is typically done through agents, car agencies and bancassurance alliances.

In 2024, the company’s portfolio grew 7.5% year-over-year, and is expected to expand approximately 8.4% by year-end 2025. Despite El Aguila’s high acquisition costs in its auto line, the company’s operating performance metrics showed a recovery in 2024 from the impact of Hurricane Otis, and an improved loss ratio in its overall portfolio. As of September 2025, the company’s results have shown signs of volatility, reporting negative bottom-line results; nevertheless, El Aguila still has continuous support from its parent company if required.

El Aguila’s risk-adjusted capitalization is very strong, as measured by Best’s Capital Adequacy Ratio (BCAR), with underwriting risk standing as the main component for required capital. In 2023 and 2024, the company benefited from capital contributions by its parent company to support its capital position after two years of consecutive negative bottom-line results. A key factor going forward for AM Best’s assessment of El Aguila’s balance sheet strength will be its premium leverage to policyholder surplus.

Negative rating actions could occur if the company’s capital base and risk-adjusted capitalization deteriorate to levels that no longer support the ratings, resulting from the materialization of risks or limitations in its business profile. A change in AM Best’s perception regarding the level of El Aguila’s strategic importance to Great American Insurance Company could also impact the company’s ratings. Positive rating actions are unlikely in the short term, but could occur if El Aguila sustains steady improvements in underwriting results and risk-adjusted capitalization.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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