AM Best Maintains Under Review Status for Credit Ratings of Insignia Life S.A. de C.V. With Implications Revised to Developing from Negative
These Credit Ratings (ratings) reflect Insignia’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best has maintained the under review status and revised the implications to developing from negative for the Financial Strength Rating of B (Fair), the Long-Term Issuer Credit Rating to “bb” (Fair) and the Mexico National Scale Rating to “a.MX” (Excellent) of Insignia Life S.A. de C.V. (Insignia) (Mexico) following the announcement that it will be acquired by Grupo MAPFRE.
These Credit Ratings (ratings) reflect Insignia’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The proposed acquisition has the potential to alleviate AM Best’s ongoing concern regarding the financial situation of Insignia’s parent company, Proyecto Insignia S.A.P.I de C.V., and its effects on the financial strength of Insignia. The under review with developing implications status reflects that this transaction is still in its early stages and requires regulatory approval from Mexico’s regulator, the Comisión Nacional De Seguros y Fianzas (CNSF). The ratings will remain under review until AM Best can fully assess the financial and operational impacts of the acquisition.
This rating action is the result of an accepted appeal from Insignia Life S.A de C.V.
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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