2013-02-20 21:30:47 -

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Seguros Inbursa, S.A.

Grupo Financiero Inbursa (Seguros Inbursa) (Mexico). The outlook for both ratings is stable.

The ratings reflect Seguros Inbursa’s solid risk-adjusted capitalization, overall historical profitability and diversified business profile. The ratings also reflect the company’s affiliation with Grupo Financiero Inbursa S.A.B. de C.V. (Grupo Financiero Inbursa), one of the largest financial groups in Mexico.

Seguros Inbursa writes both life and non-life business and remains one of the larger and more profitable domestic insurance companies operating in Mexico. The company’s focus on expense management, along with consistent levels of investment income, has historically resulted in favorable overall earnings. This has enabled Seguros

Inbursa to continue to enhance its risk-adjusted capitalization. In addition, Seguros Inbursa continues to benefit from synergies and significant operating efficiencies as a result of its access to Grupo Financiero Inbursa’s vast financial and system networks.

Seguros Inbursa has shown disciplined underwriting in a highly competitive market, while its risk-based capitalization remains fully supportive of its current ratings and outlook. Seguros Inbursa’s profitability is complemented by consistent levels of investment income.

Partially offsetting these positive rating factors are Seguros Inbursa’s continuing underwriting losses in key business segments and its reliance on investment income for its overall earnings. In addition, the Mexican insurance market remains very competitive, and Seguros Inbursa will be challenged to maintain profitability and market share.

Potential positive rating triggers would include sustained improvement in Seguros Inbursa’s underwriting results in conjunction with tangible improvements in the Mexican regulatory environment and other country risk metrics. Possible negative rating triggers could include deterioration in the company’s underwriting results, and consequently, a decline in its risk-based capitalization.

While Seguros Inbursa is well positioned at its current rating level, factors that may lead to rating enhancement include sustained improvement in its underwriting performance and an upgrade in Mexico’s country risk tier rating.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.

Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; “Rating Members of Insurance Groups”; and “Evaluating Country Risk.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..



Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

" title="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130220006227r1&sid=16929&distro=ftp\"/>" target="_blank" rel="nofollow">cts.businesswire.com/ct/CT?id=bwnews&sty=20130220006227r1&am ..

Marien Villegas, 908-439-2200, ext. 5222Financial Analyst marien.villegas@ambest.com : mailto:marien.villegas@ambest.com orSteven
Chirico, CPA, 908-439-2200, ext. 5087Assistant Vice President steven.chirico@ambest.com : mailto:steven.chirico@ambest.com orRachelle
Morrow, 908-439-2200, ext. 5378Senior Manager, Public Relations rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orJim
Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public
Relations james.peavy@ambest.com : mailto:james.peavy@ambest.com