AM Best Affirms Credit Ratings of Momento Seguros, S.A de C.V.

AM Best has affirmed the Financial Strength Rating of B (Fair), the Long-Term Issuer Credit Rating of “bb+” (Fair) and the Mexico National Scale Rating of “a+.MX” (Excellent) of Momento Seguros, S.A de C.V. (Momento) (Mexico). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Momento’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

Momento is a Mexico-based insurtech that started operations in July 2023 and was established to offer insurance products, with technological advantages over other traditional companies in its market. It specializes in the motor line of business, with operations concentrated primarily in Mexico City and its metropolitan area, while maintaining presence in other states, mainly in the central region of the country, with limited presence in northern states. The company operates in a highly competitive market, which limits its market position.

In June 2025, Momento launched a motorcycle insurance product across the states in which it operates. As of year-end 2025, the company’s portfolio has begun to show early signs of diversification within the business line, with motorcycles representing 16% of premiums, while automobiles continue to account for the majority at 84%. AM Best assesses Momento’s business profile as limited, reflecting its early stage of development, concentrated product offering and limited market presence.

Momento’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital base was strengthened by a capital injection completed in April 2025 through a Series A equity issuance backed by venture capital investors. The strong balance sheet assessment also reflects Momento’s prudent capital management, supported by a strong liquidity position and conservative underwriting leverage profile. However, AM Best's view is constrained by the company’s ongoing operating losses, which limit its ability to generate capital internally and result in continued reliance on external funding sources.

AM Best assesses Momento’s operating performance as adequate. As of year-end 2025, the company reported strong premium growth, with gross written premium increasing by 186% year over year. Loss ratio improved compared with the prior year, reflecting the effectiveness of containment measures following weather-related events. Nevertheless, profitability remains constrained by a high expense base, consistent with the company’s growth phase. The company expects to reach break-even by 2027, although execution risk associated with this target remains.

Momento has established policies and procedures for its investments and underwriting practices that are aligned to its risk tolerance. The ERM framework is still developing, consistent with its early stage of operations. AM Best notes a high execution risk associated with Momento’s business plan, given its limited operating track record and the competitive dynamics of the motor segment in Mexico. AM Best assesses Momento’s ERM as marginal.

Negative rating actions could occur if capital levels are no longer commensurate with Momento’s growth, particularly in the absence of sustained profitability, resulting in pressure on its risk-adjusted capitalization and balance sheet fundamentals. Negative rating actions also could result if operating results fall short of expectations, leading to a delay in reaching break-even or making it impossible to reach it in the medium term. Positive rating actions could result from a sustained improvement in the company’s ERM framework, leading to enhanced risk management capabilities.

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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