AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) of
The outlook of these Credit Ratings (ratings) is positive. AM Best also has affirmed the Mexico National Scale Rating (NSR) of 'aaa.MX' (Exceptional) of ADM and AVM. The outlook of the NSR is stable.
The ratings reflect
The positive outlook on the FSR and Long-Term ICRs reflect AM Best's expectation that the company's balance sheet strength will continue to improve, underpinned by positive bottom-line results. The ratings of ADM and AVM also reflect their affiliation and strategic importance to
ADM and AVM follow their group's underwriting, ERM and corporate governance practices, receive reinsurance support and benefit from its brand recognition to expand their market share in
In 2022-2023, ADM maintained its balance sheet strength at a strong level as the company continued to strengthen its capital base through the reinvestment of earnings. Premium growth during 2022 benefited from an improvement in sales in the company's global auto, mobile, home, retail and original equipment manufacture business lines, as well as commercial alliances with high profile distributors. As of
AVM's balance sheet strength also was at a strong level in 2022-2023, supported primarily by profitability. AVM's underwriting results also benefited from a reserve release in 2023 mainly due to the annualization of its policies. The company presented positive bottom-line results as of
Factors that could lead to positive rating actions for ADM and AVM include a sustained reinforcement of its strong balance sheet strength, underpinned by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), and favorable operating performance. Conversely, negative rating actions could take place if operating performance substantially deteriorates, resulting in a decline in risk-adjusted capitalization to a level no longer supportive of the current ratings.
Negative rating actions also could occur if the subsidiaries' parental support or their strategic importance to the group deteriorates in AM Best's view.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
Best's National Scale Ratings (Version
Catastrophe Analysis in AM Best Ratings (Version
Evaluating Country Risk (Version
Understanding Global BCAR (Version
Scoring and Assessing Innovation (Version
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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings.
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