AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to Multiseguros S.U., S.A. (Multiseguros). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of Multiseguros reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings also reflect Multiseguros’ risk-adjusted capitalization being at the strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its disciplined underwriting, conservative investment strategy and reinsurance structure placed with a quality panel. Partially offsetting these positive rating factors are Multiseguros’ relatively small volume of business within the Dominican Republic’s highly competitive insurance industry, its elevated underwriting leverage and tail risk.
Multiseguros was incorporated in the Dominican Republic in 2017, as a multiliner, writing property and casualty lines of business with its product portfolio composed mainly of motor, surety, fire, liabilities and engineering. Overall, the company belongs to Consorcio Federal, S.A.S, a private investment company.
Multiseguros has grown its capital base at a 124% compound annual growth rate, supported mainly by positive-bottom line results and consistent capital contributions. In AM Best’s view, the company’s balance sheet is pressured by premium risk, which is the main component of the required capital due to its business retention profile. Historically, Multiseguros has operated with higher-than-expected underwriting leverage for a multiline insurance provider. However, by year-end 2025, underwriting leverage, as measured by the ratio of net premiums written to capital, decreased from 3.9 times to 2.5 times. AM Best expects Multiseguros’ capital expansion and premiums growth targets to continue supporting a favorable trend in underwriting leverage. Despite Multiseguros’ reinsurance program being placed among counterparties with a strong credit quality, tail risk results from the absence of catastrophic reinsurance protection at upper return periods. AM Best expects Multiseguros to continue strengthening its ERM capabilities.
Multiseguros has shown disciplined and profitable underwriting since it reached breakeven in 2023. As of year-end 2025, the company reflected sound underwriting and profitability metrics, characterized by an 87.6% combined ratio and a return-on-equity ratio of 38%. AM Best expects current operating performance to be maintained within the short to mid-term.
Positive rating actions could occur if Multiseguros capital position expands to levels supportive of a very strong balance sheet assessment, while reflecting improvements in underwriting leverage, or if the company is able to maintain a favorable trend in underwriting performance. Negative rating actions could occur if there is a sharp deterioration in its risk-adjusted capitalization to levels no longer supportive of the current balance sheet strength assessment, or an unfavorable trend in underwriting 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. For more information, visit www.ambest.com.
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