AM Best Revises Outlooks to Negative and Affirms Credit Ratings of Seguros Suramericana S.A.

MEXICO CITY--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Seguros Suramericana S.A. (Sura) (Panama).

The Credit Ratings (ratings) reflect Sura’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revision of the outlooks to negative from stable reflects pressure on Sura’s operating performance, driven by a deterioration in underwriting profitability. During 2025, the company reported losses of PAB 6.9 million, due to an increase in the frequency of auto claims and the company’s high operating expenses. While management has implemented various profitability measures to address these pressures, the overall effectiveness of these actions remains to be seen. Sura’s balance sheet strength is supported by a well-structured reinsurance program and synergies provided by Grupo de Inversiones Suramericana S.A., a leading Colombia-based financial services company in Latin America’s insurance, asset management and banking industries.

As of December 2025, Sura was the fifth-largest insurer in Panama, with a market share of 7.8%; 72% of its business portfolio is composed of non-life products, with life products making up the remaining 28%. Sura’s main property/casualty business segment is auto, which represents 39% of its gross insurance service revenue.

Sura’s risk-adjusted capitalization remained at the strongest level at year-end 2025 when accounting for credit given for contractual service margin, as measured by Best’s Capital Adequacy Ratio (BCAR), despite a 16% year-over-year contraction in capital and surplus, mainly reflecting the net loss recorded during the year. The company maintains prudent capital management that is reflected through adequate underwriting leverage and conservative asset-liability management. Sura’s capital base is driven by its value-based management model. AM Best expects Sura to follow consistent capital management guidelines supportive of its ratings. Additionally, the company’s balance sheet strength is supported by a comprehensive reinsurance program, set with reinsurers that have excellent security, as well as the implementation of an internal economic capital model.

Sura’s gross insurance revenue increased by 6.1% in 2025, supported by higher revenues across most business lines. However, the non-life net/net combined ratio deteriorated to 106% from 96% in 2024, driven by a deteriorating auto line of business in addition to high operating expenses. As of June 2026, Sura reported a net loss of PAB 9.8 million, indicating continued pressure on profitability. AM Best will continue to monitor the effectiveness of management’s measures to improve profitability.

Negative rating action could occur with additional volatility and unfavorable trends in operating results over the intermediate term that no longer align with the adequate operating performance assessment. Negative rating actions could also occur if the company's risk-adjusted capitalization or overall balance sheet fundamentals were to weaken significantly. Although unlikely, positive rating action could occur if the company achieves a sustained improvement in operating performance.

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.

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