Moody's lifts Plan Seguro view to stable

Moody's Investors Service said it affirmed Plan Seguro, SA de CV, Compaņia de Seguros's Baa3 global local-currency insurance financial strength rating and Aa3.mx rating on Mexico's national scale.

The outlook also was revised to stable from negative.

The outlook revision reflects that during 2017, the company managed to restore its profitability and capitalization metrics, which worsened during 2016, Moody's explained.

As of the end of that year, Plan Seguro had to significantly increase its unearned premium reserves in order to comply with new regulatory requirements, prompting deterioration in its gross underwriting leverage to 7.2x from 4.6x in the previous year, the agency said.

The ratings reflect the company's position as niche market leader in private health insurance with solid asset quality and good track record of growth and profitability, Moody's said.

These positive considerations are mitigated by the company's still modest business scale relative to the overall Mexican insurance industry, the agency said.

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