AM Best has affirmed the A- financial strength rating of Maxseguros EPM, a captive insurer owned by Colombia’s largest energy producer, Empresas Públicas de Medellín (EPM). The ratings agency stated that Maxseguros has a stable outlook and highlighted the company’s balance sheet strength, operating performance, business profile, and enterprise risk management as key factors contributing to the rating.
Maxseguros provides reinsurance to the EPM group, covering various risks such as property damage, business interruption, cyber risk, and more. Despite some challenges like EPM’s financial leverage and Maxseguros’ limited market scope, the company has shown stable results, a favorable geographic spread of risk, and a history of growing its surplus position. Additionally, Maxseguros’ underwriting and technical capabilities have positioned it as a key player in EPM’s reinsurance panel.
The stable outlook for Maxseguros is attributed to its role within EPM’s strategy, which provides financial flexibility and operating synergies for profitable growth. The company has demonstrated the ability to adjust its retentions while maintaining consistent operating performance and capitalization.
AM Best views Maxseguros positively within EPM’s structure, but it will continue to monitor EPM’s credit profile and financial leverage in future reviews of the captive insurer. This affirmation of Maxseguros’ rating underscores its importance within the corporate parent structure and its ability to support EPM’s risk management needs.
In conclusion, the reaffirmation of Maxseguros EPM’s rating by AM Best reflects the company’s strong financial position, operational performance, and strategic role within EPM. Despite some challenges, Maxseguros has shown resilience and growth potential, positioning itself as a reliable partner in managing EPM’s insurance needs.
