A.M. Best Co. announced that it has affirmed the financial strength rating of “B++” (Very Good) of Panama’s Compania Internacional de Seguros, S.A. with a stable outlook.
“The rating reflects CIS solid capitalization, historically favorable operating profitability and its well established market presence as one of the leading insurance providers in the Panamanian market,” said Best. “These positive factors are attributable to management’s commitment to effective control systems and its focus on operating results. In existence for over 95 years, CIS is the oldest insurer in Panama and one of the top three market leaders in the country.
“Utilizing its regional brand recognition and reputation, CIS continues to seek opportunities in new markets through strategic alliances, which have provided additional insurance opportunities in Central America and South America. Currently, CIS has completed the process of upgrading its underwriting, financial, information and administrative systems, which should further enhance its competitive position.
“Partially offsetting these positive rating factors are CIS’ geographic concentration in Panama, which subjects it to the country’s economic and regulatory risk. In addition, CIS has experienced underwriting losses in its auto and health lines of business primarily attributable to higher than anticipated frequency and severity in claims. CIS management has undertaken measures to address the situation including rate increase and tighter policy terms. This challenges the company to maintain its business position and requires the continued enhancement of marketing strategies through the development of new and attractive products.”
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