|[October 09, 2013]
A.M. Best Assigns Ratings to Worldwide Medical Assurance, Ltd. Corp.
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned a financial strength rating of B+
(Good) and an issuer credit rating of "bbb-" to Worldwide Medical
Assurance, Ltd. Corp. (WWMA) (Panama City, Panama). The outlook
assigned to both ratings is stable. Worldwide Group, Inc., an
intermediate holding company of WWMA, is owned by Landshut Holding Ltd.,
Inc. and DEG Bank, which is a subsidiary of KFW Bank, a German
The ratings reflect WWMA's adequate risk-adjusted capitalization, which
is supported by its consistently positive operating results,
conservative investment portfolio and increased capital infusion by its
minority shareholder. The company also has reported continued trends of
net premium growth and a favorable market position in its core health
line of business in Panama. Furthermore, the ratings acknowledge WWMA's
higher rated reinsurance partners and an equity interest in the holding
company from one of the largest German banks.
Partially offsetting these positive rating factors are WWMA's
significant reliance on the health business in Panama to sustain is
growth and profitability, the possible saturation of this line of
business due to the small population in Panama and lack of geographic
diversification. In addition, WWMA maintains a high dependency on
reinsurance arrangements for new business growth. Although the company
is exposed to a considerable concentration risk in the health segment,
A.M. Best notes that WWMA has managed this line of business effectively
and exhibited stable and profitable results due to low loss ratios and
good underwriting standards.
Key rating factors that could result in positive rating actions include
continued profitable growth in WWMA's net premiums written, sustainable
operating results and product and geographic diversification. Factors
that could lead to potential negative rating actions include a decrease
in the company's risk-adjusted capitalization, operating results not
meeting A.M. Best's expectations and withdrawal of capital support from
its minority stockholder.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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