A.M. Best Co. has affirmed the financial strength rating of “A” (Excellent) of ING Comercial America (ING CA) and its wholly owned subsidiary, ING Comercial America Fianzas, both based in Mexico City, with a stable outlook.
“The rating reflects ING CA’s strong balance sheet, excellent capitalization and leading position within the Mexican insurance industry,” said Best. “In terms of market share, ING CA is one of the largest property/casualty underwriters in Mexico.
“The company’s new management team is currently reorganizing operating and administrative functions, which are anticipated to improve its risk management controls and operating results in the near term,” Best continued. As part of this process, ING CA has centralized its business operations, exited unprofitable business lines and refocused its business strategy to reach even broader market segments, particularly in personal lines. In addition, ING CA remains the largest Latin American operations of its parent company, ING Insurance International B.V., which is ultimately owned by the ING Group of Netherlands.”
Best noted, however, that the Company’s fluctuating operating results [are] primarily due to reserve strengthening charges in the latest years, constitute partially offsetting factors. “ING CA is expected to produce consistent operating results in the future as new marketing strategies and systems become effective,” the report continued. “Furthermore, ING CA operates in a market that is susceptible to catastrophic events and subsequently the company is dependent on reinsurance coverage to reduce exposures. ING CA also faces challenges in controlling client health costs, improving its life product portfolio as it expands into broader market segments, such as personal and auto lines of business, while competing with foreign and domestic insurers in Mexico.”
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