A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and long-term issuer credit rating of “a-“ of Maxserguros EPM, the single-parent captive insurer of Empresas Publicas de Medellin E.S.P. (EPM).
The ratings reflect Maxseguros strong risk-adjusted capitalisation, supported by a comprehensive and adequate reinsurance programme, a history of consistently strong operating performance, sound risk management capabilities and conservative balance sheet strategies, the ratings agency said.
According to A.M. Best, the positive ratings are partially offset by Maxseguros’s limited business and market scope, which is somewhat mitigated by the company’s stable loss history, favourable geographic spread of risk and the history of Maxseguros’s growing surplus position and the support of its ultimate parent, EPM.
The captive provides reinsurance to the EPM group, covering property damage and business interruption, commercial crime, directors’ and officers’ and construction liability exposures.
EPM, owned by the Colombian municipality of Medellin, is a power generation and multi-utility company in Columbia.
A.M. Best suggested that Maxseguros is well-positioned to sustain a strong level of operating performance due to its demonstrated risk management expertise and conservative underwriting criteria, hence, the stable outlooks.
