A.M. Best has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of ASSA Compania de Seguros, S.A. (ASSA) in Panama City, Panama. The outlook for both ratings is stable.
The ratings reflect ASSA's continued excellent operating results, favorable capitalisation and strong business profile in Panama, said A.M. Best.
ASSA maintains a well diversified book of business that includes both property/casualty and life/health products. ASSA is ultimately owned by Grupo ASSA, S.A., a publicly traded holding company on the Panama stock exchange.
ASSA's combined ratio, including both segments, has averaged 90 percent over the past five years, while risk-based capitalisation remains fully supportive of the current ratings and outlook. ASSA's underwriting profitability is complemented by consistent levels of investment income, which has enabled the company to steadily appreciate in surplus in recent years.
The company also benefits from established risk management systems and strong reinsurance programmes across most lines of business.
Partially offsetting these positive rating factors is ASSA's risk concentration in a geographically limited insurance market, along with operating in a country which A.M. Best considers to have an elevated level of country risk.
Additionally, the Panama insurance market is becoming increasingly competitive, where local and large outside insurers continue to vie for market share.
