08.08.2016, 17:38
A.M. Best Revises Outlooks to Positive for BUPA Mexico Compania de Seguros
OREANDA-NEWS. A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B++ (Good), the issuer credit rating of “bbb+” and the Mexico National Scale Rating of “aa-.MX” of BUPA Mexico Compañía de Seguros, S.A. de C.V. (BUPA Mexico) (Mexico).
The revision in the outlooks mirrors the revised outlooks for its immediate parent company Bupa Insurance Company (BIC), which reflect operational and capital support from the ultimate parent organization, The British United Provident Association Limited (BUPA), a global health and care company. The ratings take into consideration the parent’s creditworthiness and the access to BUPA’s well-established network and other resources, which enhance BIC’s competitive advantage. A.M. Best anticipates that the operational support and financial flexibility afforded by BUPA will continue. A.M. Best will continue to monitor BIC’s strategic fit within the parent organization.
The ratings of BUPA Mexico reflect the importance and integration of the local subsidiary to BIC, which provides the group access to one of Latin America’s largest insurance markets. The ratings also reflect BUPA Mexico’s favorable financial flexibility leveraged by a strong risk-adjusted capital position that is supported by a solid reinsurance program, as well as its experienced management team. Offsetting these positive rating factors is the subsidiary´s volatile and weak operating performance mainly derived from its 10% retention of premium, which makes the company dependent on capital injections from its group parent to support growth and maintain adequate capital under regulatory requirements.
The ratings also reflect BUPA Mexico’s affiliation with BIC, a widely recognized major medical individual and group coverage underwriter. The subsidiary offers the same array of products and adheres to its parent’s underwriting, risk management and investment policies. BUPA Mexico’s successful expansion into Mexico’s insurance market leverages the group’s global brand, reinsurance capacity and capital support provided from BIC. Currently, BIC has an FSR of B++ (Good) and an ICR of “bbb+”.
The revision in the outlooks mirrors the revised outlooks for its immediate parent company Bupa Insurance Company (BIC), which reflect operational and capital support from the ultimate parent organization, The British United Provident Association Limited (BUPA), a global health and care company. The ratings take into consideration the parent’s creditworthiness and the access to BUPA’s well-established network and other resources, which enhance BIC’s competitive advantage. A.M. Best anticipates that the operational support and financial flexibility afforded by BUPA will continue. A.M. Best will continue to monitor BIC’s strategic fit within the parent organization.
The ratings of BUPA Mexico reflect the importance and integration of the local subsidiary to BIC, which provides the group access to one of Latin America’s largest insurance markets. The ratings also reflect BUPA Mexico’s favorable financial flexibility leveraged by a strong risk-adjusted capital position that is supported by a solid reinsurance program, as well as its experienced management team. Offsetting these positive rating factors is the subsidiary´s volatile and weak operating performance mainly derived from its 10% retention of premium, which makes the company dependent on capital injections from its group parent to support growth and maintain adequate capital under regulatory requirements.
The ratings also reflect BUPA Mexico’s affiliation with BIC, a widely recognized major medical individual and group coverage underwriter. The subsidiary offers the same array of products and adheres to its parent’s underwriting, risk management and investment policies. BUPA Mexico’s successful expansion into Mexico’s insurance market leverages the group’s global brand, reinsurance capacity and capital support provided from BIC. Currently, BIC has an FSR of B++ (Good) and an ICR of “bbb+”.
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