Ratings agency Moody's assigned a first-time local rating of Aa2.ar and global local currency rating scale of Ba3 to the Argentine unit of US-based insurance holding company ACE (NYSE: ACE), the agency said.
Both ratings have a stable outlook, Moody's added.
The ratings primarily reflect support provided in the form of reinsurance by Bermuda-based affiliate ACE Tempest Reinsurance (ACE Tempest Re), which is an indirect wholly-owned subsidiary of ACE, Moody's said.
The Argentine unit, ACE Seguros, protects its locally retained business through a combination of a meaningful quota share with an excess loss reinsurance program with ACE Tempest Re.
The ratings of ACE Seguros also reflect its favorable financial metrics as well as its multiple distribution channels, its well- diversified and good quality investment portfolio and its diversification by line of business, Moody's said.
Partly offsetting these strengths is the company's volatile underwriting results, the agency said.
ACE Seguros provides a wide range of life and non-life insurance.
To read Moody's full statement on Ace Seguros, in English, paste the following link in your browser: