AM Best Affirms CESCE México, S.A. de C.V. and CESCE Fianzas México, S.A. de C.V. Ratings with Stable Outlook
AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Ratings of “bbb” (Good), and the Mexico National Scale Rating of “aa.MX” (Superior) for CESCE México, S.A. de C.V. (CESCEM) and CESCE Fianzas México, S.A. de C.V. (CESCEF). Both entities, based in Mexico City, Mexico, maintain a stable outlook.
CESCEM’s ratings reflect its very strong balance sheet strength and marginal operating performance, alongside limited business profile and adequate enterprise risk management (ERM). CESCEF’s ratings similarly reflect very strong balance sheet strength, with adequate operating performance, limited business profile, and appropriate ERM practices.
These ratings are underpinned by CESCEM and CESCEF’s affiliation with Compañía Española de Seguros de Crédito a la Exportación, S.A. Compañía de Seguros y Reaseguros (CESCE), robust risk-adjusted capitalization assessed by Best’s Capital Adequacy Ratio (BCAR), and well-structured reinsurance programs. Despite competitive market dynamics in Mexico’s credit insurance and surety segments, CESCEM and CESCEF benefit from strategic ownership and operational support.
CESCEM, majority-owned by CESCE’s subsidiary CIAC and Banco Nacional de Comercio Exterior, specializes in credit insurance, ranking among Mexico’s top five in this segment. CESCEF, wholly owned by CIAC, focuses on administrative surety, maintaining a small market share.
Both companies leverage CESCE’s expertise and adhere to its policies, supported by reinsurance arrangements with CESCE and affiliates, ensuring robust financial strength. Their risk-adjusted capitalization is bolstered by conservative underwriting and investment strategies, alongside comprehensive reinsurance.
Looking ahead, CESCEM’s stable outlook anticipates continued strong balance sheet performance and prudent underwriting practices. Positive rating actions hinge on sustained premium sufficiency and operational stability. Meanwhile, CESCEF’s stable outlook is supported by its current capital strength amid economic cycles, with no immediate positive actions expected, contingent on maintaining capital adequacy.
Negative rating actions could result from deteriorating operating performance impacting capital adequacy for CESCEM, or from increased administrative expenses or reduced investment income for CESCEF.
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