AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Aseguradora Agricola Comercial, S.A. (ACSA) (El Salvador). The outlook of these Credit Ratings (ratings) is stable.

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

ACSA was founded in 1973 and has since been one of the most important insurance companies in El Salvador. The company underwrites non-life and life businesses, with its portfolio being concentrated primarily in fire and allied lines of business. In 2023, its market share was 13%.

ACSA’s balance sheet strength assessment of very strong reflects its stability and constantly growing capital base, despite significant capital requirements driven by exposure to local investments and yearly dividend payments. ACSA’s balance sheet is protected further by a responsible asset-liability management and a solid reinsurance program, composed of highly rated reinsurance companies.

AM Best assesses ACSA’s operating performance as adequate given the company’s record of positive net income results, sustained by stable and ongoing improvements to its technical ratios. ACSA has defined policies and procedures that are well-adhered to its risk tolerances, and it is performing corporate-level enhancements, which are attached to its ERM practices, all due to the company’s investment in technology and professional development.

The stable outlooks reflect AM Best’s expectation that ACSA will continue to implement its strategy successfully to maintain its profitable results and very strong balance sheet strength.

Positive rating actions could occur if ACSA’s operating performance steadily improves in the medium term, while maintaining prudent capital management. Conversely, negative rating actions could take place if there are shortfalls in the company’s implementation of its strategy deriving in a weakening of its operating performance or balance sheet strength.

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