AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Interamericana de Fianzas y Seguros, S.A. (IFS) (Panama). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect IFS’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The stable outlooks reflect AM Best’s expectation that IFS will maintain its overall balance sheet strength assessment, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), while ongoing strategic initiatives implemented by management will maintain stable operating performance over the intermediate term.

IFS was incorporated in August 2020 and is licensed to operate in Panama’s general insurance branches, as well as in the surety and personal lines of business. The company is based in Panama City, Panama. IFS develops its business inside Panama and has a diversified portfolio mainly focused in the surety line of business, in addition to property/casualty and life business. As of December 2024, IFS ranked as the country’s 14th largest insurer, based on its 1.55% market share of overall premiums and 21st as of February 2025 with 0.4% market share. IFS is Panama’s third-largest surety writer, with a 19.7% market share as of December 2024 and fifth-largest as of February 2025 with a 3.6% market share.

IFS’ very strong balance sheet strength assessment is based on its strongest level of risk-adjusted capitalization, as measured by BCAR, its conservative investment portfolio allocated mainly in Panama government bonds, solid liquidity measures that are enhanced by generally positive underwriting, and operating cash flows, as reflected by a return-on-equity ratio of 36.3% in 2024.

IFS has shown profitability since its inception, which is driven by improvements in its underwriting performance as reflected by premium sufficiency over the past four years. AM Best expects IFS to stabilize its operating performance in the following years while maintaining positive bottom-line results.

AM Best considers IFS’ ERM practices to be appropriate, as these were built in reference to the framework COSO Report 2013, 2017 and are well-integrated into its operations. The company has a sound reinsurance program in place with highly rated reinsurers.

Negative rating actions could result from a deterioration in IFS’ underwriting practices, which maintain high growth targets that could lead to pressure on its operating performance. Negative rating actions also could take place if there is a deterioration in the company’s risk-adjusted capitalization due to major capital outflows and rapid premium growth on a net basis. A positive impact on the ratings could occur in the medium term if the company’s capital base increases while maintaining a risk-adjusted capitalization at the strongest level.

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.

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