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A.M. Best Revises Issuer Credit Rating Outlook to Positive for Worldwide Medical Assurance, Ltd. Corp.

PR-Inside.com: 2017-08-10 18:29:01

A.M. Best Revises Issuer Credit Rating Outlook to Positive for Worldwide Medical Assurance, Ltd. Corp.

A.M. Best
Salvador Smith, +52 55 1102 2720, ext. 109
Associate Financial Analyst
salvador.smith@ambest.com
or
Alfonso Novelo, +52 55 1102 2720, ext. 107
Senior Director, Analytics
alfonso.novelo@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Worldwide Medical Assurance, Ltd. Corp. (WWMA) (Panama City, Panama). The outlook of the FSR remains stable.

The revised Long-Term ICR outlook to positive reflects WWMA’s continued strong risk-adjusted capitalization, conservative investment strategy, strong underwriting practices, improved profitability indicators and successful gradual expansion into other Latin American markets. These strengths are offset by the company’s dependence on its reinsurance counterparties to implement its growth targets and the highly competitive landscape in Latin America’s health and life insurance segments.

The company began operations in 1999 and has grown successfully in its niche market, providing insurance for clients traveling overseas to receive medical attention. This is done through a mix of brokers, bancassurance and direct distribution channels. Through holding company, Worldwide Group, Inc., WWMA benefits from its partial ownership by KfW DEG, the German development bank, its model to optimize the selection of medical care providers and the support from highly rated reinsurance counterparties. During the past three years, WWMA has expanded operations into other Latin American markets such as Guatemala, Bolivia and Paraguay.

Historically, WWMA has maintained positive capital creation capacity, which along with a conservative profits reinvestment strategy, has contributed to its strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital management is strengthened further by the use and development of WWMA’s economic capital model and enterprise risk management practices.

WWMA’s strong underwriting, risk retention and stringent expense practices translate into strong premium sufficiency metrics. Moreover, WWMA’s synergies with its sister company in the Dominican Republic, have optimized the company´s underwriting. These measures, combined with stable financial products, have resulted in improved profitability indicators. Performance indicators such as return on equity and return on assets were 24.4% and 9.3%, respectively, at year-end 2016. A.M. Best expects this trend to continue in the near to medium term.

Rating factors that could lead to positive rating actions include sustained stable operating performance, successful consolidation of company operations in targeted locations and maintaining diversification across highly rated reinsurers. Negative rating actions are not expected in the short term unless significant changes in the company’s strategy damage its income-generating profile or if there is material deterioration of current capital adequacy ratios, as measured by BCAR.

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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • Analyzing Insurance Holding Company Liquidity (Version March 25, 2013)
  • Evaluating Country Risk (Version May 2, 2012)
  • Insurance Holding Company and Debt Ratings (Version May 6, 2014)
  • Risk Management and the Rating Process for Insurance Companies (Version April 2, 2013)
  • Understanding Universal BCAR (Version May 1, 2017)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.

  • Previous Rating Date: Aug. 26, 2016
  • Date of Financial Data Used: June 30, 2017

This press release relates to rating(s) that have been published on A.M. Best's website. For additional rating 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. A.M. Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, A.M. Best cannot attest as to the accuracy of the information provided.

A.M. Best’s credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

A.M. Best receives compensation for interactive rating services provided to organizations that it rates. A.M. Best may also receive compensation from rated entities for non-rating related services or products offered by A.M. Best. A.M. Best does not offer consulting or advisory services. For more information regarding A.M. Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the A.M. Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper [..].

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Press Information


Published by
Hossam Abdel-Kader
+43 1 9582319
e-mail
www.pr-inside.com/



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