AM Best assigns credit rating to Mozart Insurance, Ltd.

MEXICO CITY, March 14, 2024–(BUSINESS WIRE)–AM the best has assigned a financial strength rating of B++ (Good) and a long-term issuer credit rating of “bbb” (Good) to Mozart Insurance, Ltd. (Mozart) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is Stable.

The ratings reflect the strength of Mozart’s balance sheet, which AM Best rates as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The stable outlook reflects Mozart’s ability to report profitable results, allowing its capital base to strengthen over time.

Mozart was incorporated in Bermuda on 12 July 2019 and registered as a Class 3A insurer on 26 September 2019.

Mozart is owned by Newport International Limited, also incorporated and registered in Bermuda. Mozart assumes risks from Compañía Mundial De Seguros SA (Mundial), an insurance company based in Colombia, through retrocession agreements with Mundial’s reinsurers. Retrocession programs include proportional coverages under quota share agreements provided for motoring line (third party liability and comprehensive motor insurance), lessee insurance for direct business on rental guarantees, lease of property premises real estate for residential and commercial buildings and personal accidents, covering accidental death, disability and medical expenses for drivers and passengers of public service vehicles. The scale of the operation, along with the geographic concentration in a single country, are factors that limit Mozart’s business profile.

Mozart’s risk-adjusted capitalization stands at its strongest level, as measured by Best’s capital adequacy ratio (BCAR). Mozart’s capital base has been strengthened over the years through the reinvestment of profits; however, dividend payments have limited its growth. Mozart’s very strong balance sheet strength rating recognizes the company’s liabilities and risk appetite adequately.

Adequate rating of Mozart’s operating performance reflects the company’s ability to generate profitable results despite its recent establishment. Mozart is sensitive to foreign exchange volatility due to the conversion of the Colombian peso, the currency in which all business is denominated, to US dollars, Mozart’s reporting currency in Bermuda. As of September 2023, the company reported a positive bottom line of USD 2.8 million, driven by premium adequacy along with investment income. AM Best considers Mozart’s ERM to be a good fit, as it is well integrated into its operations; risk appetite and tolerance are well defined.

Positive valuation actions may occur if Mozart is able to strengthen its capital base over time by maintaining the strongest level of risk-adjusted capitalization through continued earnings retention. Negative rating actions can occur if the company’s capital base is eroded, driven by a deterioration in operating performance or significant cash withdrawals.

This press release relates to the Credit Ratings that are published on AM Best’s website. For all rating information relating to the release and related disclosures, including details of the office responsible for issuing each of the individual ratings referred to in this release, please see AM Best’s Last assessment activity Web page. For additional information about the use and limitations of Credit Score opinions, please see Best’s Guide to Credit Scores. For information on the appropriate use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings and AM Best’s press releases, please see the Guide to the Appropriate Use of Best’s Ratings and Reviews.

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.

Copyright © 2024 by AM Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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contacts

Inger Rodriguez
Financial analyst
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Alfonso Novelo
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Al Slavin
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