AM Best Assigns Credit Ratings to BTG Pactual Seguros S.A.
September 19 2024 - 12:51PM
Business Wire
AM Best has assigned a Financial Strength Rating of B++
(Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to BTG
Pactual Seguros S.A. (BTG Seguros) (Brazil). The outlook assigned
to these Credit Ratings (ratings) is stable.
These ratings reflect BTG Seguros’ balance sheet strength, which
AM Best assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management.
The stable outlooks are underpinned by the company's ability to
maintain a very strong balance sheet strength assessment, supported
by the positive performance of its holding company and the
initiatives implemented by management.
BTG Seguros is a domestic insurer in Brazil, operating
predominantly in the country’s surety segment. The company takes
advantage of the business profile and market presence of its
affiliated company, BTG Pactual Resseguradora S.A., to which it
cedes almost all of its risk. The company’s parent, Banco BTG
Pactual S.A. (BTG Pactual) [B3: BPAC11], provides operational
support and risk management capabilities and can provide liquidity
if needed.
Also reflected in BTG Seguros’ ratings is the impact of BTG
Pactual’s credit profile and Brazil’s challenging and volatile
macroeconomic and political environment, which continues to hamper
meaningful recovery and stability in the country. BTG Pactual has
shown consistent improvement in its results and credit strength
while expanding and diversifying its operations; however, BTG
Seguros’ ratings are limited somewhat by its domestic operating
environment.
BTG Seguros maintains adequate standalone attributes in terms of
operating performance, including low loss and expense ratios, and
the strongest level of risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR). BTG Seguros has produced
positive earnings in recent years, mainly driven by investment
income. AM Best’s analysis of BTG Seguros benefits from BTG
Pactual’s expertise, stemming from its long track record with a
portfolio of large companies.
AM Best will monitor BTG Seguros’ balance sheet strength,
operating performance, risk-adjusted capitalization and the
execution of its product and geographic expansion, along with the
credit profile of its parent.
Negative rating actions could take place if there is a
deterioration in the company's risk adjusted capitalization due to
major capital outflows. Also, negative rating actions could take
place if the company's strategic relevance for the group
diminishes. Although it is unlikely, positive rating actions could
take place if the company continues to sustain a minimum strongest
level of balance sheet strength.
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 pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best’s Credit Ratings. For information on the proper
use of Best’s Credit Ratings, Best’s Performance Assessments,
Best’s Preliminary Credit Assessments and AM Best press releases,
please view Guide to Proper Use of Best’s Ratings &
Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance
industry. Headquartered in the United States, the company does
business in over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Ricardo Rodriguez Financial Analyst +52 55 9085
2708 ricardo.rodriguez@ambest.com
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christopher.sharkey@ambest.com
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55 9085 7501 alfonso.novelo@ambest.com
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908 882 2318 al.slavin@ambest.com