MEXICO CITY--(BUSINESS WIRE)--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
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