AM Best Revises Under Review Status to Negative for Credit Ratings of Armour Secure Insurance S.A. de C.V.

AM Best has revised the under review status to negative from developing and affirmed the Financial Strength Rating of B (Fair), the Long-Term Issuer Credit Rating of “bb” and the Mexico National Scale Rating of “a.MX” of Armour Secure Insurance S.A. de C.V. (Armour) (Mexico).

The under review with negative implications status reflects AM Best’s ongoing review of the financial situation at Armour’s holding company after the cancellation of the acquisition of its operation in Mexico by AXA XL. This transaction was cancelled at the conclusion of the waiting period for regulatory approval on Nov. 25, 2020, as established in the acquisition agreement.

The ratings reflect Armour’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

The strong balance sheet assessment reflects Armour’s capital base, consistently strengthened through the reinvestment of earnings over the years. Armour has been able to sustain a profitable domestic operation through its underwriting results and investment income.

Armour’s business profile is limited due to its concentration in the niche market of title insurance in Mexico, coupled with challenges ahead for the real estate market amid Mexico’s weakened economy.

AM Best’s view of the company’s ERM is marginal due to concern regarding governance and availability of information at its holding company, Trebuchet Group Holdings Limited.

The ratings will remain under review until AM Best can fully assess the financial situation at Armour’s holding company.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 www.ambest.com.

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