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A.M. Best Upgrades Issuer Credit Rating of Worldwide Medical Assurance, Ltd. Corp.

PR-Inside.com: 2018-08-08 19:02:01

A.M. Best Upgrades Issuer Credit Rating of Worldwide Medical Assurance, Ltd. Corp.

A.M. Best
Salvador Smith, +52 55 1102 2720, ext. 109
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 upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Worldwide Medical Assurance, Ltd. Corp. (WWMA) (Panama City, Panama). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook for the FSR remains stable.

The Credit Ratings (ratings) reflect WWMA’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICR reflects WWMA’s sustained strong operating performance supported by sound underwriting practices and a conservative investment strategy, as well as balance sheet strength underpinned by risk-adjusted capitalization maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also recognize WWMA’s 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 since 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. WWMA benefits from its partial ownership by KfW DEG, the German development bank, through its holding company, Worldwide Group, Inc. WWMA’s model of optimizing the selection of medical care providers with support of highly rated reinsurance counterparties also have provided benefits. In recent 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 strategy of reinvesting profits, has contributed to its sound risk-adjusted capitalization. Capital management is strengthened further by the use and development of WWMA’s economic capital model, ERM practices and improved diversification among highly rated reinsurers in 2018.

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, such as return on equity and return on assets, which were 21.9% and 8.4%, respectively, at year-end 2017. A.M. Best expects this trend to continue in the near to medium term.

Factors that could lead to positive rating actions include sustained stable operating performance, successful consolidation of company operations in targeted locations and maintaining diversification among 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.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. 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 a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Press Information


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


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