AM Best Affirms Credit Ratings of ASSA Compañía de Seguros S.A.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of ASSA Compañía de Seguros S.A. (ASSA) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ASSA’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

ASSA is a subsidiary of ASSA Compañía Tenedora, S.A. and is owned ultimately by Grupo ASSA, S.A., a financial service holding company publicly traded on the Panama Stock Exchange.

The ratings reflect ASSA’s balance sheet strength, which is underpinned by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), sound underwriting quality and profitability, solid capital management, an adequate reinsurance program and an ERM framework that is supportive of its risk profile.

ASSA is a Panama-based insurer established in 1980 and ranks as the country’s largest insurer in terms of market share, based on premiums. The company is diversified both geographically and in its portfolio of products and investments, with net premiums written mainly composed of auto, fire, individual and group life, and health insurance. ASSA operates through a network of brokers, agents and direct distribution channels.

The company’s capital base has grown consistently through reinvestment of earnings.

A diversified reinsurance program placed among a high-quality panel of reinsurers reinforced the company’s growth strategy, and consequently, counterparty credit risk exposures have been minimized.

During 2024, ASSA’s profitable underwriting results were sustained through a well-contained expense structure as reflected by a combined ratio below 100%, mainly driven by improvements in auto, health and operating expenses. The company maintains a sound risk profile and financial income continues to support its results; however, it is not dependent on this type of revenue to achieve positive bottom-line results. ASSA constantly reviews its underwriting guidelines to improve the performance of business segments that are deviating from targets.

Negative rating actions could result if the company’s available capital no longer supports its risks, either because of capital outflows or a greater risk appetite, or higher financial leverage or lower interest coverage metrics at the holding company level. Additionally, negative rating actions could also occur if operating performance deteriorates to levels no longer supportive of the current ratings. Positive rating actions are unlikely but could take place if ASSA achieves material improvements in its ERM framework.

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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