S&P Global upgrades Azuaga Seguros’ rating outlook to positive

Es It is the only insurance company specialising in surety bond with a dual investment grade rating from S&P Global and A.M. Best.

Madrid, 30 September 2024. Azuaga Seguros, an insurer specialising in surety bond, has had its rating outlook upgraded to ‘positive’ by the credit rating agency S&P Global.

The agency has revised the outlook and affirmed the long-term financial strength rating at ‘BBB-’. The upgrade is based on the increase in the size of its capital base, the policy of maintaining conservative underwriting practices and the careful management of provisions. It also highlights the development of a sustainable and profitable business model, supported by the long-term nature of its surety bonds and its recognised expertise in renewable energy projects and housing bonds.

S&P Global’s analysis projects an increase in Azuaga Seguros’ revenues between 2024 and 2026, and the combined ratio will continue to improve.

According to S&P Global, the positive outlook could translate into an upgrade of Azuaga Seguros’ rating in the next 12 to 24 months, provided the insurer continues to strengthen its capital base and maintains solid profit margins.

This review marks the second outlook upgrade for Azuaga Seguros so far this year. In early September, AM Best also upgraded the company’s outlook to ‘stable’, noting the insurer’s improved financial stability, its ability to manage risks and maintain solid operating performance.

Both ratings confirm Azuaga Seguros’ strengthening capital base as the company continues to profitably expand its business. The outlook indicates that the insurer will continue to increase its capital base, while maintaining solid levels of profitability and capital.

Vanesa Carro, managing director of Azuaga Seguros in Spain, said: ‘This improved outlook by the rating agencies, in particular S&P Global, confirms that the insurer’s strategy, together with a qualified and specialised team, are the best
qualified and specialised team, are the best elements to demonstrate our high solvency and professionalism’.