AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of Seguradora Internacional de Moçambique, S.A.

LONDON–(BUSINESS WIRE)–#insuranceAM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Seguradora Internacional de Moçambique, S.A. (SIM) (Mozambique). The outlook assigned to these Credit Ratings (ratings) is stable.

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

The rating actions follow the completion of AM Best’s assessment of the consolidated financial strength of SIM, which incorporates Fidelidade-Companhia de Seguros, S.A.’s (Fidelidade S.A.) (Portugal) life and non-life operations in Mozambique (Fidelidade Mozambique), which were transferred to SIM following Fidelidade S.A.’s acquisition of SIM’s majority shareholding on 31 December 2021.

SIM’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital consumption is driven primarily by asset risk arising from the company’s concentrated investment portfolio, which is weighted toward domestic fixed income securities and real estate. The balance sheet strength assessment also factors in the company’s strong liquidity and prudent reserving. A partially offsetting factor is SIM’s moderate dependence on reinsurance, although the associated credit risk is managed through the use of a stable reinsurance panel of solid credit quality.

AM Best expects SIM’s operating performance to remain strong, even with the inclusion of Fidelidade Mozambique. SIM has a track record of solid and stable underwriting results, despite of challenging market conditions, as demonstrated by a five-year (2017-2021) weighted average combined ratio and return on equity of 73.1% and 15.6%, respectively. In contrast, Fidelidade Mozambique has reported technical losses, although results have improved to close to break-even over the past two years, having commenced operations in 2015. Nonetheless, SIM’s prospective operating performance is expected to remain strong, supported by a good balance of underwriting and investment earnings.

SIM maintains a solid competitive position in its domestic market, solidifying its position as the third-largest insurer in terms of gross written premium (GWP) with the addition of Fidelidade Mozambique business. The merger has enhanced SIM’s product offering, with Fidelidade Mozambique’s health business expected to be make up approximately 30% of GWP in 2022. However, the company’s profile remains limited to Mozambique, which exposes it to very high levels of economic, political, and financial system risk. This presents challenges for the company, although AM Best expects these risks to be mitigated partly by the company’s strong market position and evolving ERM function, which is likely to benefit from the expertise of SIM’s new, immediate insurance parent, Fidelidade S.A.

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 specialising 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

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Marving Lopez
Associate Financial Analyst
+44 20 7397 4389

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jessica Botelho-Young, CA
Associate Director, Analytics
+44 20 7397 0268

Jeff Mango
Managing Director,
Strategy & Communications
+1 908 439 2200, ext. 5204

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