Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Downgrades Credit Ratings of Insignia Life S.A. de C.V. and Places Credit Ratings Under Review With Negative Implications

PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.
December 19, 2022 GMT

MEXICO CITY--(BUSINESS WIRE)--Dec 19, 2022--

AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good), the Long-Term Issuer Credit Rating to “bb” (Fair) from “bbb-” (Good) and the Mexico National Scale Rating to “a.MX” (Excellent) from “aa-.MX” (Superior) of Insignia Life S.A. de C.V. (Insignia) (Mexico). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications. These rating actions follow the sustained deterioration of the financial strength of its parent, Proyecto Insignia, S.A.P.I. de C.V.(PIN), and its potential effects on Insignia’s balance sheet strength.

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

Insignia’s operating results have been impacted heavily by COVID-19-related claims during the past two years, on which significant losses reported in the operating entity have in turn translated into a severe weakening of PIN’s capital base, further deteriorating its already elevated financial leverage. The under review with negative implications status points to the impact that the high financial leverage at the holding company level could have on Insignia’s balance sheet strength, as the sole source of revenue of its parent company. In addition, the ongoing losses in net results could potentially result in a sharp decrease in risk-adjusted capitalization. AM Best will continue to monitor this situation as it evolves.

This press release relates to Credit Ratings that have been published on AM Best’s website. For allrating 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’sRecent Rating Activityweb 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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20221219005752/en/

CONTACT: Inger Rodríguez

Associate Financial Analyst

+52 55 1102 2720, ext. 108

inger.rodriguez@ambest.comElí Sánchez

Associate Director, Analytics

+52 55 1102 2720, ext. 122

eli.sanchez@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comAl Slavin

Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

KEYWORD: EUROPE MEXICO CENTRAL AMERICA

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2022.

PUB: 12/19/2022 03:02 PM/DISC: 12/19/2022 03:02 PM

http://www.businesswire.com/news/home/20221219005752/en