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Rivoli Reinsurance Company -- Moody's announces completion of a periodic review of ratings of Rivoli Reinsurance Company

·11 mins read

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Rivoli Reinsurance Company

Global Credit Research - 27 Jul 2020

New York, July 27, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Rivoli Reinsurance Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

Rivoli Reinsurance Company's (Rivoli Re) Baa1 global local-currency insurance financial strength (IFS) rating, is based on the direct and explicit support that exist between Rivoli Re and America Movil, S.A.B. de C.V. (senior unsecured debt A3) its parent company headquartered in Mexico City. Which is the Latin America's leading telecom operator, Rivoli Re was founded in 2008 as part of America Movil's corporate risk management strategic plan. Rivoli Re writes risks associated with America Movil and its affiliates, such as property coverage which represented 32.5% of gross premiums in 2019, the remaining 67.4% corresponded to mobile coverage. Rivoli Re's rating benefits from the support provided by the parent company, which includes America Movil's guarantee of Rivoli Re's obligations related to its reinsurance operations, as well as a capital maintenance agreement. Rivoli Re's rating, which is one notch below America Movil's rating, reflects the high net exposure to property risks, which exceed the explicit guarantee provided by its ultimate parent. In addition, Rivoli Re's financial profile is very limited, given its short operating experience and narrow product focus.

Rivoli Reinsurance Company is based in Burlington, Vermont. The company reported total assets of $226.9 million and total shareholder's equity of $179.5 million at December 2019. For 2019 fiscal year, the company reported premiums earned of $99.8 million and a net income of $68.7 million.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Reinsurers Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Francisco Uriostegui Analyst Financial Institutions Group Moody's de Mexico S.A. de C.V Ave. Paseo de las Palmas No. 405 - 502 Col. Lomas de Chapultepec Mexico, DF 11000 Mexico JOURNALISTS: 1 888 779 5833 Client Service: 1 212 553 1653 Marc R. Pinto, CFA MD - Financial Institutions Financial Institutions Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653

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