AM Best has reaffirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for Worldwide Medical Assurance, Ltd. Corp. (WWMA), based in Panama City, Panama.
The outlook for these ratings remains stable.
Financial Performance and Stability
These ratings reflect WWMA’s robust financial standing, which AM Best categorizes as top-tier strength.
The affirmation draws attention to the company’s solid operating performance, balanced business profile, and proactive risk management practices.
WWMA’s impressive balance sheet, marked by superior risk-adjusted capitalization, supports the recent ratings confirmation.
This financial robustness is complemented by AM Best’s optimistic projections for continued profitability, which is expected to further enhance the company’s capital framework.
Market Expansion and Strategy
In addition to its strong capitalization, WWMA has a proven track record of delivering solid operating results.
This success stems from effective underwriting practices and a prudent investment strategy.
The company is also making strides in expanding into various Latin American markets.
However, ambitious growth objectives may face hurdles due to the fierce competition present in the life and health insurance sectors in the region.
Established in 1999, WWMA has successfully positioned itself to provide tailored insurance solutions for clients seeking medical treatment abroad.
The company utilizes a diverse distribution strategy, engaging brokers, bancassurance partnerships, and direct sales to reach its clients.
Furthermore, WWMA enjoys the backing of KfW DEG, the German development bank, via its parent company, Worldwide Group, Inc. Recently, WWMA has broadened its operations into additional Latin American nations, such as Guatemala, Bolivia, and Paraguay.
Future Outlook
The company employs a strategic approach when selecting medical care providers, bolstered by a reinsurance program with highly-rated partners.
This strategy is instrumental in facilitating WWMA’s international growth and enhancing its overall business portfolio.
Over the years, WWMA has shown a formidable ability to generate capital.
Its conservative strategy for reinvesting profits has allowed it to maintain a healthy level of risk-adjusted capitalization.
This capital management was further strengthened by a USD 5 million investment in 2021, designed to optimize asset structures following the integration of a network of medical providers from its sister entity, WW Concierge Healthcare Services, Ltd.
WWMA’s careful underwriting practices and strict expense management have consistently ensured sufficient premium ratios.
Collaboration with its sister firm located in the Dominican Republic, along with periodic improvements to its reinsurance strategies, have enhanced WWMA’s underwriting performance.
These deliberate efforts have resulted in stable profitability, with a return on equity and return on assets reaching 12.0% and 4.2%, respectively, by the end of 2023.
As of June 2024, WWMA reported a net income of USD 2.7 million, staying true to its previous operational trends.
Looking ahead, positive rating adjustments could occur if WWMA sustains growth in its capital base over the medium term, thereby supporting its existing risk-adjusted capitalization.
Effectively executing strategic initiatives within select markets could also lead to positive revisions.
Conversely, any detrimental changes in strategy that adversely affect income generation, or a decline in risk-adjusted capitalization to levels inconsistent with its strong rating, may prompt negative rating actions.
Source: News.ambest.com
