...Financial Strength: The ratings are based on balance sheet, operating performance and other key quantitative strengths, all in which Reaseguradora Patria, S.A. (Patria) historically has performed better than its peers. Fitch Ratings positively views qualitative factors, such as corporate governance and management, and its wide product and market strategy. The current rating is constrained by the company's modest size relative to global reinsurance competitors and above-average exposure to variable income investments. Solid Capitalization Levels: Patria's operating leverage was 1.3x in 2014, an increase from prior years but still consistent with rating expectations. Strong capitalization is the result of the stringent Mexican insurance regulation, its conservative dividend policy and its RBC approach. Patria's risk management model is advanced and has proved effective in monitoring and mitigating the company's risks. Operating Performance Affected: Patria has been able to maintain low loss...
