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AM Best Affirms Credit Ratings of Grupo Nacional Provincial S.A.B.

AM Best has affirmed the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit Rating of “a” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Grupo Nacional Provincial S.A.B. (GNP) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

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

GNP is the largest insurer in Mexico based on gross premiums written (GPW). The company operates as a composite insurer of life and non-life business; core business segments include life, health and automobile coverage.

Dividend payments, driven by the company’s targets on capital efficiency, have partially restricted AM Best’s view of GNP’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), in the past. However, in recent years, GNP’s balance sheet strength has been assessed as very strong, having benefited from additional equity surplus due to changes in statutory accounting at year-end 2016, and positive bottom-line results since 2016.

The additional equity surplus is a consequence of GNP implementing accounting measures based on market value approximations of assets and liabilities. GNP follows conservative practices in terms of its asset-liability management. In addition, the company’s balance sheet strength is reinforced by its good reinsurance program placed with highly rated counterparties, which protects the company’s risk retention adequately.

In 2022, GNP reported 12.6% growth in GPW, while maintaining profitable business in most of its core segments. Aside from the increase in claims, the company’s underwriting performance metrics did not present material deviations with respect to historical trends, still benefiting from a consistent flow of investment income. Policies were aligned to market changes, and the company’s pricing model was improved to gain competitiveness and market share in low-risk areas. As of September 2023, GNP is taking actions to mitigate the impacts of the challenging economic environment. The company continued to post adequate underwriting results, investment yield and net income of MXN 2.8 billion in the nine-month 2023 period.

Positive rating actions are unlikely but could occur if the company demonstrates improvement in its operating performance. Negative rating actions could take place if the company’s additional equity erodes with sustained negative operating performance, or if dividends paid negatively impacts the company’s risk-adjusted capitalization to a level that is no longer supportive of the current rating levels.

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 © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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