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AM Best Affirms Credit Ratings of Insignia Life S.A. de C.V.

·4-min read

AM Best has affirmed the Financial Strength Rating of B+ (Good), the Long-Term Issuer Credit Rating of "bbb-" and the Mexico National Scale Rating of "aa-.MX" of Insignia Life S.A. de C.V. (Insignia) (Mexico). The outlook of these Credit Ratings (ratings) is positive.

The ratings reflect Insignia’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect the prospect of a sustained improvement in Insignia’s balance sheet strength derived from the December 2019 and March 2020 capital contribution received from its holding company, Proyecto Insignia, S.A.P.I. de C.V.

Insignia (est. Mexico 2008) underwrites individual and group life insurance through a commercial network of more than 3,000 agents and 10 offices distributed throughout Mexico. Insignia’s growth strategy has been supported by advertising and incentives for employees and agents, allowing for premium growth well above the market’s rate.

Insignia’s balance sheet strength reflects the improvement of its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as a result of the capital contributions carried in 2019 and in March 2020. Shareholder’s commitment to the company’s growth and strategy are key factors of the ratings. Offsetting these positive rating factors is Insignia’s holding company’s high financial leverage.

In 2020, Insignia reported positive bottom-line results for the fourth consecutive year. Profitability was backed by investment income, as the company’s investment strategy continues to be conservative and provides a steady flow of revenue to back its underwriting results. COVID-19-related claims impacted Insignia’s during 2020, mainly affecting the group life line of business; however, impact on the individual life line of business was within the conservative estimate. Insignia expects the COVID-19 pandemic effect to decrease gradually, allowing the combined ratio to converge toward premium sufficiency levels in the medium term.

The ratings also consider Insignia’s sound underwriting practices, a highly experienced management team and ongoing improvements in ERM. AM Best expects Insignia to strengthen its ERM framework through ongoing improvements involving systems updates and an internal economic capital model.

Key factors that could lead to positive rating actions for Insignia include a continuation of its current risk-adjusted capitalization as the business cycle and strategy evolve. Positive rating actions also could occur from lower financial leverage at the holding company level.

Negative rating actions could occur should Insignia’s holding company increase its financial leverage or face pressure to service its debt. Negative rating actions also could take place if there is a constant deterioration of the company’s underwriting quality and bottom-line results.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Inger Rodriguez
Associate Financial Analyst
+52 55 1102 2720, ext. 108

Eli Sanchez
Associate Director, Analytics
+52 55 1102 2720, ext. 122

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644