Today: December 13, 2018, 8:39 pm
  
Business

AM Best Assigns Credit Ratings to AVLA Seguros de Crédito y Garantía S.A.

PR-Inside.com: 2018-12-05 19:35:01

AM Best Assigns Credit Ratings to AVLA Seguros de Crédito y Garantía S.A.

Elí Sánchez
Senior Financial Analyst
+52 55 1102 2720, ext. 108
eli.sanchez@ambest.com

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107
alfonso.novelo@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to AVLA Seguros de Crédito y Garantía S.A. (AVLA) (Chile). The outlook assigned to these Credit Ratings (ratings) is stable.

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

AVLA is a Chilean insurer; originally constituted in 2013 as AVALCHILE. In 2016, the company changed its name to AVLA. The company is majority-owned by Inversiones AVLA Seguros S.A. (90.27%) and with the remaining 9.73% held by the group’s ultimate parent, AVLA S.A. The company specializes in financial guarantees, credit insurance and surety, ranking first in surety and financial guarantees and third in credit insurance in Chile.

Business profile is considered neutral to the rating; since its creation in 2013, AVLA has successfully become one of the main participants in Chile’s market for credit insurance and financial guarantees. The company’s recent creation and current development of its niche market still leaves room for implementation risk, which in AM Best’s view, is mitigated partially by the so far successful implementation of its business plan.

The operating performance of the company is considered adequate despite its recent creation. AVLA has been able to promote its products in a profitable manner and maintain adequate underwriting metrics; however, the operation remains small and needs to convert to an adequate and less volatile cost structure. Claim experience has been good, with strong support from a reinsurer panel with excellent security.

AVLA Seguros’ balance sheet assessment is strong given its solid capital base for the risks it undertakes, as reflected in its very strong risk-adjusted capitalization. However, financial leverage at its holding company level limits AM Best’s view of balance sheet strength to strong, given the relevance of the company to its parent in terms of revenues and profits. The strong assessment also recognizes the willingness and proven history of capital contributions made by its shareholders to support AVLA’s growth.

The stable outlooks on the ratings are based on the prospect of the company continuing to develop its niche market in a profitable manner. Consequently, the outlooks also recognize the willingness of its shareholders to continue to support the company’s growth with capital contributions.

Positive rating actions could take place if the company continues to evolve its niche market in a profitable manner that allows its capital base to grow. Negative rating actions could take place if the company’s risk adjusted capitalization falls below levels that support the current ratings, either by excessive growth without further capital contributions or by significant losses that affect the capital position of the company.

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

  • Evaluating Country Risk (Version Oct. 13, 2017)
  • Understanding Universal BCAR (Version May 14, 2018)
  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)
  • Rating New Company Formations (Version Oct. 13, 2017)
  • Rating Surety Companies (Version Oct. 13, 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: Not Rated.
  • Date of Financial Data Used: September 30, 2018.

This press release relates to rating(s) that have been published on AM 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 AM Best’s Recent Rating Activity web page.

AM 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. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM 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. AM 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.

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

AM 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 AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Press Information


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


# 1415 Words
Related Articles
More From The Author
Monthly information related to total number of [..]
Article 223-16 of general regulation of French Autorité des Marchés Financiers Lyon - France LYON, France, Dec. 05, 2018 (GLOBE [..]
Intervest Offices & Warehouses : Publication relating [..]
Summary of the notification As at 3 December 2018 Intervest Offices & Warehouses received a transparency notification dated [..]
Mayors Migration Council to Launch in Marrakesh [..]
Council to be led by mayors of Los Angeles, Athens, Montreal, Milan, Freetown, Kampala, Amman and BristolMarrakesh, Morocco, Dec. [..]
Intervest Offices & Warehouses finalises announced sale-and-lease-back [..]
On 3 December 2018, Intervest Offices & Warehouses acquired all shares in a real estate company which owns a pharmaceutical [..]
CNH Industrial Announces Senior Leadership Changes
London, December 5, 2018 CNH Industrial N.V. (NYSE:  CNHI / MI:  CNHI) today announced that Linda Knoll, Chief Human Resources [..]
 
More From Business
Learn about Dishonest Companies and Specialist on [..]
12 December 2018 – Beware.org provides the most favorable conditions for average consumers to publish the alerts and warnings about [..]
Brands Reviews Offers the Best Quality Reviews
12 December 2018 – Brands Reviews is offering the largest collection of reliable and trusted qqtube review and subpals review [..]
509 Electric Is the Best Residential Electrical [..]
Yakima, USA – 12 December 2018 – 509 Electric is the best Yakima Electrical Contractor ready to offer top quality [..]
Cross Talks Awarded $5K Grant from the [..]
The Penn State Brandywine Boost, a program of the Invent Penn State initiative, has selected Delaware State Chamber Member, Soraya [..]
Huber Needles: Market is likely to register [..]
This Market Study provides key insights and forecast on the global Huber needles market for the forecast period 2017-2024. The [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.