AM Best has reaffirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) for Virginia Surety Seguros de México S.A. de C.V. (VSSM) in Mexico City, Mexico. The outlook for these Credit Ratings (ratings) is positive. Additionally, AM Best has upheld the Mexico National Scale Rating (NSR) of “aaa.MX” (Exceptional) for VSSM, with a stable outlook.
These ratings reflect VSSM’s strong balance sheet strength, as assessed by AM Best, along with its adequate operating performance, limited business profile, and effective enterprise risk management.
The positive outlook on the FSR and Long-Term ICR reflects AM Best’s anticipation of continued enhancement in the company’s balance sheet strength, supported by favorable bottom-line results. VSSM has maintained a strong level of balance sheet strength since its establishment in Mexico and benefits from its recent affiliation with Assurant, Inc., its ultimate parent company. Moreover, VSSM exhibits robust risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR).
VSSM, a subsidiary of Virginia Surety Company, Inc., became operational in Mexico in January 2017, primarily focusing on auto insurance and other property/casualty lines of business. It also offers specialty products covering theft or accidental damage for consumer technology items, distributed through its network of manufacturers, distributors, and retailers. VSSM operates under the same management as Assurant Daños México, S.A. and Assurant Vida México, S.A., leveraging operational synergies within the Assurant group.
Positive rating actions for VSSM could result from sustained reinforcement of its strong balance sheet strength, accompanied by robust risk-adjusted capitalization and favorable operating performance. Conversely, negative rating actions may occur if operating performance significantly declines, leading to inadequate risk-adjusted capitalization.
For further details on these Credit Ratings and related disclosures, including the responsible issuing office, please refer to AM Best’s Recent Rating Activity web page. For additional information on the use and limitations of Credit Rating opinions, please consult the Guide to Best’s Credit Ratings and the 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, with operations spanning over 100 countries and regional offices in key global locations.
