AM Best Affirms A- Rating for General de Seguros, S.A. Amid Operational Changes
- AM Best recently affirmed multiple credit ratings for General de Seguros, S.A., reflecting its strong balance sheet strength.
- The company has faced challenges with underwriting performance, although improvements have been noted in its life business line.
- The stable outlooks are tied to the support from Peña Verde, S.A.B., highlighting the importance of parent company affiliations.
On November 8, 2024, AM Best announced the affirmation of several credit ratings for General de Seguros, S.A., including a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent). These ratings reflect the company's strong balance sheet strength, which is classified as the strongest, supported by its risk-adjusted capitalization. Despite this strength, Genseg has faced challenges in its operating performance, especially related to underwriting results. Notably, improvements in the underwriting performance were observed in 2023, particularly in its life insurance division. The company has also been adjusting its underwriting practices to achieve sufficient premium levels as of September 2024. The support from its parent company, Peña Verde, S.A.B., is crucial for Genseg's stability. While positive rating actions are not anticipated in the medium term, any weakening of this support could lead to negative implications for Genseg's ratings.