AM Best Assigns Credit Ratings to AVLA Perú Compañía de Seguros S.A.

AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of bbb to AVLA Perº Compa±­a de Seguros S.A. (AVLAP) (Lima, Peru). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect AVLAPs balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

AVLAP is a Peruvian property/casualty insurer constituted in 2015, specialized in surety, with complimentary lines of credit insurance and engineering, ranking eighth among the non-life insurance segment in Peru and third among the surety market.

AM Best considers AVLAPs business profile as neutral to the rating. Since its creation in 2015, AVLAP has been able to successfully exploit a guarantee market with limited capacity in Peru, becoming one of the main participants for credit insurance and surety. The companys recent creation and current development of its niche market still leaves room for implementation risk, which in AM Bests view, is mitigated partially by the thus far successful implementation of its business plan. Additionally, AM Bests assessment of the companys business profile is limited by the small size of the operation within a small segment in a Bests Country Risk Tier 3 country.

AM Best considers the companys operating performance to be adequate despite its recent creation.

AVLAP has been able to promote its products in a profitable manner and maintain adequate underwriting metrics; however, the operation remains small and needs to converge to an adequate and less volatile cost structure. Operating performance and balance sheet strength are strongly supported by a reinsurer panel with excellent security.

AVLAPs balance sheet assessment is strong given its solid capital base for the risks it undertakes, as reflected in its strong risk-adjusted capitalization. The strong assessment also recognizes the willingness and proven history of capital contributions made by its shareholders to support AVLAPs growth.

The stable rating outlooks reflect the companys growth prospects, supported by the willingness of its shareholders to continue to support the companys commercial and financial development with capital contributions.

Positive rating actions could take place if the company continues to develop its business in a profitable and planned fashion, while further strengthening its capital base and maintaining adequate underwriting. Negative rating actions could take place if the company fails to profitably achieve its growth objectives while at the same time affecting its risk adjusted capitalization. Additionally, if there are important capital outflows to its holding company that weaken AVLAPs risk-adjusted capitalization, the ratings could be downgraded.

This press release relates to Credit Ratings that have been published on AM Bests 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 Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of

Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

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Elí Sánchez
Senior Financial Analyst
+52 55
1102 2720, ext. 108

[email protected]

Alfonso Novelo
Senior Director, Analytics
55 1102 2720, ext. 107

[email protected]

Christopher Sharkey
Manager, Public Relations
908 439 2200, ext. 5159

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Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

[email protected]