AM Best Affirms Credit Ratings of Fianzas Avanza S.A de C.V.

AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb” (Good) and the Mexico National Scale Rating of “aa.MX” (Superior) of Fianzas Avanza S.A de C.V. (Fianzas Avanza) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Fianzas Avanza’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings of Fianzas Avanza also reflect its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), adequate reinsurance program and liquid investment strategy. Partially offsetting these positive rating factors are Fianzas Avanza’s historic volatile performance, which has gradually stabilized by the change in its strategy, the intense competition in Mexico’s surety bond segment and the challenging economic environment.

The company is Mexico-domiciled and began operations in 2017, initially underwriting fidelity insurance. Since 2022, Fianzas Avanza’s business portfolio has expanded to administrative surety, which is consistent with other market participants. Based on gross premiums written, the company has a small share of Mexico’s surety market. In addition, due to Fianzas Avanza’s monoline nature, its business profile is considered limited.

Fianzas Avanza’s risk-adjusted capitalization has been partially sustained through capital injections in the past. The company’s overall profitability was historically driven by financial products, contained claims and reinsurance commissions, which offset its high operating expense structure. However, the company has shifted its risk retention from fronting products and is supported by an established sales department that has bolstered growth, as well as an enhanced reinsurance structure placed with highly rated counterparties. As a result, Fianzas Avanza’s underwriting performance has been premium sufficient since 2023. Additionally, Fianzas Avanza posted net income of MXN 33 million in 2025, according to preliminary results. Looking forward, AM Best expects the company to sustain this operating performance trend supported by prudent growth rate and well contained surety exposures.

Although unlikely in the short term, positive rating actions could occur if Fianzas Avanza is able to reflect a reinforced capital base supportive of its strongest balance sheet strength assessment. Negative rating actions could occur if the company’s underwriting performance deteriorates substantially or if there is a significant increase in business risk, due to a high concentration in the construction sector or uncertainty with regard to the government's spending on infrastructure, which could impact surety market growth.

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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