Best Affirms Panama’s Aseguradora Mundial Financial Rating

October 11, 2005

A.M. Best Co. announced that it has affirmed the financial strength rating of “A-” (Excellent) of Aseguradora Mundial, S.A. (Panama City, Panama) with a stable outlook.

“The rating reflects Mundial’s strong capital position, historically favorable operating profitability and its excellent business profile in the Panamanian market,” said Best. “The rating also reflects the company’s underwriting expertise, conservative investment portfolio and increased expenditures in technological upgrades. Aseguradora Mundial is a leading insurer in the local market providing life and non-life insurance, as well as asset management, actuarial consulting, and personal financial services.

“This rating also acknowledges Aseguradora Mundial’s recent engagement in strategic alliances aimed to provide a wider range of products and services as management seeks to exploit all possible cross-selling synergies, create new sources of income and further enhance its market position in Panama.”

Best said the “company’s geographic concentration in Panama, which subjects it to relatively high acquisition costs, along with a difficult health care environment” constitute offsetting factors.

The rating agency also indicated that it “believes that Aseguradora Mundial’s historical profits and initiatives to expand its product portfolio and develop alternative distribution channels position it well to achieve continued sales growth and improve its earnings capacity going forward.”

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