AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Grupo Mexicano de Seguros, S.A. de C.V.

MEXICO CITY–(BUSINESS WIRE)–AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb+” (Good) and the Mexico National Scale Rating (NSR) of “aa+.MX” (Superior) of Grupo Mexicano de Seguros, S.A. de C.V. (GMX) (Mexico). The outlooks assigned to these Credit Ratings (ratings) is positive.

The ratings reflect GMX’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.

The positive outlooks reflect the company’s ability to maintain profitable results even in adverse scenarios, with underwriting performance characterized by premium sufficiency, and profitability further strengthened by investment income.

GMX signed a settlement agreement to pay the Mexico City Subway System 1,300 million pesos for the claims regarding the fire in one of its control pits and the collapse of the elevated pass in its twelfth line. As of April 2022, the company has paid 1,300 million pesos. GMX has recovered 750 million pesos from reinsurance, with another 400 million pesos still pending. The materialization of this payment did not have a significant effect in GMX’s risk adjusted capitalization, which remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), for all years.

The ratings also reflect GMX’s affiliation with its immediate parent, GMS Valore, S.A. de C.V., which provides GMX with synergies and operating efficiencies as a member of this group. Offsetting these positive rating factors is the strong competitive environment GMX experiences in its main business lines, which could pressure future underwriting performance.

The company initiated operations in Mexico City in 1998. GMX ranks among the top 10 insurers in Mexico’s property/casualty segment, with 8% market share as of March 2022, based on direct premiums written. The company’s chief business line is general and professional liability, and it operates mainly through a network of independent agents and promoters, as well as online sales.

GMX has strengthened its capital base consistently as a result of positive bottom-line results over the years, which have provided the company with the capacity to withstand a significant rise in claims. The company’s underwriting performance can be characterized by premium sufficiency for over six years. Profitability is achieved by underwriting results and further enhanced by investment income, which has improved in recent years, as GMX’s shifts toward a less conservative strategy, reflecting the greater sophistication of the company’s operations.

The company has been able to grow continuously during the past seven years, by taking advantage of its digital channel and technological capabilities. GMX’s management team has a solid track record of implementing strategies and taking advantage of opportunities for innovation in Mexico’s insurance market given the increased competition.

Positive rating actions could occur if GMX is able to maintain premium sufficiency, and that translates into an upward trend of positive bottom-line results, or if its internationalization efforts result in steady premium growth that improves geographic diversification and widens the company’s market scope. Factors that may also lead to positive rating actions include GMX’s ability to maintain its risk-adjusted capitalization at the strongest level, as measured by BCAR. Negative rating actions could take place should GMX experience a continued deterioration of underwriting results that ultimately erodes the company’s capital base and weakens its 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

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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

Jeff Mango
Managing Director,
Strategy & Communications
+1 908 439 2200, ext. 5204

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