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

MEXICO CITY–(BUSINESS WIRE)–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 (ERM).

GNP is a Mexico-focused insurance company with over 120 years of experience and a strong track record in its domestic market. The company is a market leader in terms of gross premiums written (GPW) and continues to expand its market share across the lines of business in which it participates. GNP operates as a composite insurer of life and non-life products, with solid position in its core business segments including life, health and automobile coverage. The company’s portfolio is concentrated in Mexico and as of year-end 2024, is distributed by GPW as follows: health (35%); life (34%), automobile (26%), and property/casualty (5%). This portfolio is supported by an extensive distribution network that includes agents, brokers and massive public and private channels. Due to the diversified product base, solid market position and extensive national distribution network, AM Best assesses GNP’s business profile as favorable.

GNP’s balance sheet strength is underpinned by its very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Dividend payments, driven by the company’s targets on capital efficiency, have partially restricted AM Best’s view of GNP’s risk-adjusted capitalization 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 reflects GNP’s adoption of accounting measures based on market value approximations of assets and liabilities. GNP follows conservative asset-liability management practices, supported by a prudently diversified investment portfolio primarily allocated in fixed income securities. 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.

As of year-end 2024, GNP reported a 17% increase in GPW driven by growth across all lines of business. Despite this sound performance, net income declined by 11.1%, primarily reflecting higher claims in its core medical segment and broader increases in healthcare-related costs. The investment operation continued to play a key role in supporting earnings stability.

As of September 2025, GNP maintains a growth trajectory, reflected in a 12% increase in gross written premiums during the third quarter of 2025 compared with the same period of 2024. Net income in the nine-month 2025 period increased by 20%, supported by adequate underwriting results, stable investment income and improved claims experience, particularly in the automobile and group medical expense segments. Looking ahead to end-year 2025, while operating efficiencies may be more challenging to sustain, AM Best considers GNP’s management team to be well-positioned to maintain solid profitability and support continued growth.

AM Best considers GNP’s ERM to be adequate, supported by the use of economic capital models to quantify aggregate risk and make strategic business decisions. In addition, risk tolerance is measured through solvency capital requirements and maximum retention limits and is monitored on an ongoing basis.

Negative rating actions could take place if GNP’s risk-adjusted capitalization and balance sheet strength deteriorate to a point that they no longer support its current ratings, driven either by sustained negative operating performance or cash outflows that significantly erode the company’s capital base. No positive rating actions are foreseen in the short term; however, this could occur if the company attains sustained improvements in its operating performance.

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.

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