A.M. Best Places Credit Ratings of QBE de México Compañía de Seguros S.A. de C.V. Under Review With Developing Implications

MEXICO CITY--()--A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” and the Mexico National Scale Rating of “aaa.MX” of QBE de México Compañía de Seguros S.A. de C.V. (QBE de Mexico) (Mexico), following the announced agreement of Zurich Insurance Group Ltd (Zurich) [Swiss Exchange: SIX ZURN] to acquire the Latin American businesses of QBE Insurance Group Limited (QBE Group).

The Credit Rating (rating) actions follow the Feb. 25, 2018, announcement that Zurich has entered into an asset purchase agreement to fully acquire QBE Group’s insurance operations in Argentina, Brazil, Colombia, Ecuador and Mexico. The transaction is subject to regulatory approvals in Switzerland and each respective country.

A.M. Best expects the transaction to strengthen the acquirer´s business profile in the Mexico region by taking advantage of QBE de Mexico’s distribution channel platform. The under-review status reflects the benefits QBE de Mexico could receive from Zurich’s leading expertise in the Mexico property segment and group reinsurance support once the company is integrated into Zurich. A.M. Best expects the under-review status to be resolved in the latter part of 2018, pending regulatory approvals and discussions regarding the strategic position of the company once new ownership takes place. Any material changes to QBE de Mexico’s financial profile will be reviewed to assess the impact on its ratings. QBE de Mexico continues to operate on a business-as-usual basis and is not a material earnings contributor to QBE Group.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • A.M. Best’s Ratings On a National Scale (Version Oct. 13, 2017)
  • Available Capital and Holding Company Analysis (Version Oct. 13, 2017)
  • Evaluating Country Risk (Version Oct. 13, 2017)
  • Understanding Universal BCAR (Version Oct. 13, 2017)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.

  • Previous Rating Date: Dec. 20, 2017
  • Date of Financial Data Used: Sept. 30, 2017

This press release relates to rating(s) that have been published on A.M. Best's website. For additional 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. A.M. Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, A.M. Best cannot attest as to the accuracy of the information provided.

A.M. Best’s credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

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A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Salvador Smith, +52 55 1102 2720, ext. 109
Associate Financial Analyst
salvador.smith@ambest.com
or
Alfonso Novelo, +52 55 1102 2720, ext. 107
Senior Director, Analytics
alfonso.novelo@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Salvador Smith, +52 55 1102 2720, ext. 109
Associate Financial Analyst
salvador.smith@ambest.com
or
Alfonso Novelo, +52 55 1102 2720, ext. 107
Senior Director, Analytics
alfonso.novelo@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com