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AM Best Affirms Credit Ratings of General de Seguros, S.A.B.

·4-min read

MEXICO CITY, December 03, 2021--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent), the Long-Term Issuer Credit Rating of "a-" (Excellent) and the Mexico National Scale Rating (NSR) of "aaa.MX" (Exceptional) of General de Seguros, S.A.B. (Genseg) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Genseg’s balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also recognize Genseg’s affiliation and strategic importance to its ultimate parent, Peña Verde, S.A.B., a leading group in Mexico’s insurance and reinsurance industries, which provides synergies and operating efficiencies, as well as the reinsurance support provided by affiliated company, Reaseguradora Patria, S.A.

Genseg initiated operations in Mexico City in 1972. The company mainly underwrites motor, accident and health, a mix of property/casualty and life insurance lines, and historically has participated in the crop insurance market. Genseg operates throughout Mexico with a network of independent agents, brokers and commercial offices.

Genseg’s balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capitalization and liquidity provide Genseg with flexibility to cover deviations in claims or volatile securities market conditions without having to realize losses in its investment portfolio. The company’s capitalization is further supported by a reinsurance program placed with highly rated entities.

Historically, operating performance been limited by underwriting performance and investment valuation; the effects of the COVID-19 pandemic on Mexico’s stock market, as well as the decline in Mexico’s sovereign debt rating, have caused losses in the valuation of Genseg’s investments, further limiting operating performance in 2020. As of June 2021, investment income has shown improvement; however, profitability remains limited by underwriting results.

Genseg is undergoing a comprehensive transformation project, which includes the implementation of a new core system, which includes pricing and risk-assessment tools, digital platforms and products for agents and policyholders as part of its strategy to achieve premium sufficiency and increase its market scope.

The stable outlook reflects AM Best’s expectation that Genseg and its holding company will be able to make any necessary adjustments, either in capitalization or operating performance, to support Genseg’s capital base, amid the evolving organizational structure of the group.

The company’s ratings could come under pressure if risk-adjusted capitalization weakens as a result of extensive capital outflows or a lack of underwriting discipline that generates negative technical results, causing the capital base to erode to a level no longer supportive of the current ratings. Negative rating actions also could take place if the support provided by its group, Peña Verde, S.A.B., weakens in AM Best’s view.

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.

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

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Inger Rodríguez
Associate Financial Analyst
+52 55 1102 2720, ext. 108

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Eli Sanchez
Associate Director, Analytics
+52 55 1102 2720, ext. 122

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644

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