AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of ASSA Compañía de Seguros S.A. (ASSA) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ASSA’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The stable outlooks reflect AM Best’s expectation that ASSA will maintain its overall balance sheet strength assessment of strongest, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), while ongoing strategic initiatives implemented by the management will maintain operating performance supportive of the current ratings over the intermediate term.

ASSA is a subsidiary of ASSA Compañía Tenedora, S.A. and is owned ultimately by Grupo ASSA, S.A., a financial service holding company publicly traded on the Panama Stock Exchange.

The ratings reflect ASSA’s balance sheet strength, which is underpinned by its strongest level of risk-adjusted capitalization, as measured by BCAR, sound underwriting quality and profitability, solid capital management, an adequate reinsurance program and an ERM framework that is supportive of its risk profile.

ASSA is a Panama-based insurer established in 1980 and ranks as the country’s largest insurer in terms of market share, based on premiums. The company is diversified geographically and in its portfolio of products and investments, with net premiums written mainly composed of health, fire, auto, individual and group life and other types of insurance. ASSA operates through a network of brokers, agents and direct distribution channels.

The company’s capital base has grown consistently through reinvestment of earnings.

A diversified reinsurance program placed among a high-quality panel of reinsurers reinforces the company’s growth strategy; consequently, counterparty credit risk exposures are minimized.

A 13% year-over-year increase in gross written premiums and a well-contained expense structure, mainly driven by improvements in auto, fire, health and life business lines, led to ASSA achieving profitable underwriting results in 2025. The company maintains a sound risk profile and financial income continues to support its results; however, it is not dependent on this type of revenue to achieve positive bottom-line results. ASSA maintains a well-defined underwriting strategy that adheres to a disciplined risk selection and risk transfer philosophy consistently; the company regularly reviews its underwriting guidelines to improve the performance of business segments that are deviating from targets.

Negative rating actions could result if the company’s available capital no longer supports its risks, either because of capital outflows or a greater risk appetite, or higher financial leverage or lower interest coverage metrics at the holding company level. Additionally, negative rating actions could also occur if operating performance deteriorates to levels no longer supportive of the current ratings. Positive rating actions are unlikely but could take place if ASSA achieves material improvements in its ERM framework.

 

Fuente: AM Best

Enlace: www.ambest.com.