AM Best affirmed the financial strength rating of B++ (good) and the issuer’s long-term credit rating of “bbb” (good) from
The ratings reflect the strength of RICL’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.
The ratings also reflect the company’s strongest risk-adjusted capitalization at the end of 2021, as measured by Best’s capital adequacy ratio (BCAR), a strong business strategy and its management team. experienced. The small size of the business and the challenging environment in which it operates partially offset these positive rating factors, which could put pressure on future growth and underwriting performance.
RICL is an insurance and reinsurance company founded in
RICL’s primary business is health insurance, with a comprehensive network of operations that has enabled growth in Latin America and
The loss ratio of RICL deteriorated in 2021 compared to the results of the previous year; however, after the integration of the new entities into the organization in 2020, the cost-revenue structure of the business changed, which improved profitability despite the increase in claims. The company has gradually increased its retention, but has maintained its underwriting at a healthy volume relative to the growing capital base, and is expected to maintain underwriting leverage metrics in the near term.
Positive rating actions could occur as a result of continued improvement in operating performance as the company successfully executes its business expansion. Negative rating actions could occur if premium growth or deteriorating underwriting results erode the company’s capital base and reduce risk-adjusted capitalization to a level that no longer supports ratings. Negative rating actions could also arise following a deterioration in the profile of the holding company of RICL.
This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limits of the credit score notice, please consult Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at
Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
src=”https://cts.businesswire.com/ct/CT?id=bwnewssty=20220722005434r1sid=acqr8distro=nxlang=fr” style=”width:0;height:0″ />
Senior Financial Analyst
+52 55 1102 2720, ext. 134
Manager, Public Relations
+1 908 439 2200 ext. 5159
Senior Manager, Analytics
+52 55 1102 2720, ext. 107
+1 908 439 2200 ext. 5204
Source: AM Best