AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to Aseguradora Agricola Comercial, S.A. (ACSA) (El Salvador). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect ACSA’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
ACSA was founded in 1973 and has since been one of the most important insurance companies in El Salvador. The company underwrites non-life and life businesses, with its portfolio being primarily concentrated in Fire and Allied lines. In 2022, its market share was 11.41%.
ACSA’s balance sheet strength assessment of very strong reflects its stability and constantly growing capital base, despite a large equity risk capital requirement, which exposes the company to local investments and yearly dividend payments. ACSA’s balances sheet is further protected by a responsible asset-liability management and strengthened reinsurance plan, composed of highly rated reinsurance companies.
Operating performance is considerate adequate given the company’s record of positive net income results, sustained by stable and ongoing improvements to its technical ratios. ACSA has defined policies and procedures that are attach to its risk tolerance and its performing corporate level enhancements, which are attach to its ERM practices, all due to the company investing in technology and professional development.
The stable outlooks on ACSA’s ratings reflect the expectation that the company will continue to implement its strategy successfully to maintain its profitable results and very strong balance sheet strength.
Positive rating actions could occur if ACSA's operating performance steadily improves in the medium term, while maintaining prudent capital management. Conversely, negative rating actions could take place if there are shortfalls in the company’s implementation of its strategy deriving in a weakening of its operating performance or balance sheet strength. 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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