AM Best Affirms Credit Ratings of Liberty Mutual Surety Brasil Seguros S.A.

MEXICO CITY--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Liberty Mutual Surety Brasil Seguros S.A. (LMSB) (São Paulo, Brazil). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect LMSB’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also consider support from LMSB’s ultimate parent, Liberty Mutual Insurance Company (Liberty Mutual).

The stable outlooks represent the historical, profitable operating performance of Liberty Mutual's surety business in Brazil, as well as the extensive implicit and explicit support provided by Liberty Mutual via its ERM and legal considerations, underwriting/claims, investments and other support services. The outlooks further contemplate that this entity will maintain sufficient balance sheet metrics and risk-adjusted capitalization to be supportive of the ratings.

LMSB is a niche player that currently writes large local and corporate accounts in various business sectors, exclusively in Brasil. Despite the high level of competition in the country, the company leverages its long-term producer partnerships across multiple distribution sources, as well as Liberty Mutual’s deep experience and expertise in writing surety worldwide. LMSB’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR). The balance sheet strength assessment considers LMSB’s solid reinsurance program with Liberty Mutual, as well as a conservative investment philosophy.

The business LMSB writes has shown consistent profitability historically, while underwriting income is expected to be augmented by investment returns in a double-digit interest rate environment. The company’s risk management frameworks and capabilities are considered appropriate and aligned with its stated risk profile, along with guidance and oversight by Liberty Mutual.

Negative rating actions could occur with any reduction in support as provided by Liberty Mutual. While unlikely, positive rating movement could be considered if operating performance metrics were to align with strong-rated peers. Negative rating actions also could take place if the expectations of the business plan are not met.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.