AM Best Places Credit Ratings of Seguradora Internacional de Moçambique, S.A. Under Review with Developing Implications

LONDON--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Seguradora Internacional de Moçambique, S.A (SIM) (Mozambique).

The under review rating action follows the announcement by the Autoridade Reguladora Da Concorrência (Competition authority in Mozambique) that SIM’s immediate parent, Banco Internacional de Moçambique (Millennium bim), has entered into an agreement with Fidelidade Companhia de Seguros S.A. (Fidelidade) to share joint control over SIM. Fidelidade is ultimately owned by Fosun International Limited, which has a weaker credit quality than SIM. According to the announcement, as part of the agreement, Fidelidade is expected to transfer its Mozambican life and non-life operations to SIM, including its insurance portfolio, assets, liabilities and personnel.

The ratings have been placed under review with developing implications as AM Best needs to fully assess the financial and operational impacts of the transaction on the credit fundamentals of SIM. Based on discussions with management, the transaction is expected to be completed by the first quarter of 2022, at which point, AM Best will aim to resolve the under review with developing implications status.

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 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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