AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' and the Mexico National Scale Rating of 'aaa.MX' of
The outlook of these Credit Ratings (ratings) is stable.
XLSM is a member of
The rating reflect XL's strategic importance to and alignment with
XLSM began operations in 2004 as a subsidiary of
XLSM benefits from being integrated into the XL group, gaining operational leverage through the same practices and procedures, reinsurance, underwriting selection and ERM practices. XLSM serves as an underwriting channel for the group, ceding 99.9% of written premiums to its British affiliate,
Since 2015, the company has been able to produce positive bottom-line results due to efficiencies in operating and administrative expenses, and has experienced sizeable growth since 2016.
XL historically has demonstrated its support for XLSM by providing capital contributions during the past five years. The last capital contribution took place in 2015, which was equivalent to 18% of XLSM's 2014 reported surplus. This, in addition to good profitability indicators for year-end 2017 and 2018, resulted in solid risk-adjusted capital, as measured by Best's Capital Adequacy Ratio (BCAR).
If negative rating actions are taken on the main operating subsidiaries of XL, as a result of a material deterioration in the risk-adjusted capitalization, performance or financial leverage at the holding company, or as a result of a weakening of the strategic importance of
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
Evaluating Country Risk (Version,
Understanding Universal BCAR (Version,
Catastrophe Analysis in AM Best Ratings (Version,
Available Capital & Holding Company Analysis (Version,
AM Best's Ratings On a National Scale (Version,
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
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