AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of AVLA Seguros de Crédito y Garantía S.A. (AVLA Chile) (Chile).
These Credit Ratings (ratings) reflect AVLA Chile’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also recognize AVLA Chile’s affiliation and strategic importance to its ultimate parent, AVLA Bermuda Holding Corp Ltd. (ABHC), a financial holding company domiciled in Bermuda, engaged in insurance operations in Chile, Peru, Mexico, Brazil and the United States. As of March 2026, ABHC had equity of USD 110 million.
The positive outlooks recognize the positive trend in AVLA Chile’s results, backed by shareholder support and the company’s ability to navigate volatility.
AVLA Chile began operations in Chile in 2013 as AVALCHILE, before changing its name to AVLA Chile in 2016. AVLA Chile specializes in credit insurance and surety, in which the company remains a market leader. AM Best assesses AVLA Chile’s business profile as neutral. The company has redefined its risk appetite successfully through adverse market conditions. In AM Best’s view, management’s capabilities remain key to adjusting its product offerings amid these evolving market conditions.
After two years of unfavorable technical results, AVLA Chile has been able to return to premium sufficiency levels and overall profitable results of CLP 1.7 billion during 2025, and this positive trend continues as of June 2026. AM Best will continue to monitor AVLA Chile’s results and underwriting quality.
AVLA Chile’s balance sheet strength assessment is strong given its solid capital base for the risks it undertakes. The strong balance sheet strength assessment recognizes the company’s reinsurance dependence, while also taking into account the excellent security level of its reinsurance panel.
AVLA Chile benefits from belonging to the AVLA Group, as reflected by the willingness and proven history of capital contributions made by its shareholders to support growth, with the latest one taking place in 2024, equivalent to USD 4.8 million.
Positive rating actions could take place if AVLA Chile is able to demonstrate a consistent upward trend in its bottom-line results that compares favorably to the adequate assessment level. Positive rating actions could also take place if AVLA Chile is capable of showing a stable upward trend in capital base growth, accompanied by consistent risk-adjusted capitalization at the strongest levels. Negative rating actions could occur if, in AM Best’s opinion, the strategic importance of AVLA Chile to its group decreases significantly or if the consolidated financial strength of the AVLA group deteriorates to a point no longer supportive of the current ratings.
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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