Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody´s upgrades HSBC-La Buenos Aires & HSBC-New York Life Seguros de Vida; affirms HSBC-New York Life de Retiro

 The document has been translated in other languages

29 Dec 2008
Moody´s upgrades HSBC-La Buenos Aires & HSBC-New York Life Seguros de Vida; affirms HSBC-New York Life de Retiro

Buenos Aires, December 29, 2008 -- Moody´s Latin America upgraded HSBC-La Buenos Aires Seguros's ("HSBC-La Buenos Aires") global local-currency insurance financial strength (IFS) rating to Ba3 from B1 and its Argentine national scale IFS rating to Aa2.ar from Aa3.ar. In the same rating action, the agency upgraded HSBC-New York Life Seguros de Vida's ("HSBC-NYL Vida") global local-currency IFS rating to Ba3 from B2 and to Aa2.ar from A1.ar on the Argentine national scale. Finally, Moody's affirmed the B2 global local-currency IFS rating and A1.ar Argentine national scale IFS rating of HSBC-New York Life Seguros de Retiro (HSBC-NYL Retiro). The outlook for all three companies is stable.

HSBC-La Buenos Aires is a leading property and casualty insurer in Argentina that is wholly-owned by the HSBC Group. HSBC-NYL Vida and HSBC-NYL Retiro are jointly owned by the HSBC Group and by New York Life Insurance Company, and are engaged in the Argentine life insurance and annuities markets, respectively. All three of these entities are well-integrated with HSBC Bank Argentina S.A.--the important domestic bank owned by the HSBC Group. The strong and deepening integration among the three insurance companies and with the bank is seen by the common senior management, common members of the Board of Directors, common retail and corporate customers, and the overarching bancassurance distribution strategy of HSBC.

Regarding the main entity of the Argentine insurance group--HSBC-La Buenos Aires--Moody's said that the upgrade reflects the company's improving business and financial profile, as well as the importance of the ownership and implied support from HSBC. HSBC-La Buenos Aires maintains a well-established presence and brand recognition in the Argentine general insurance sector, adequate product risk and business diversification, and favorable and stable profitability. Other positive rating factors are the company's increased market presence and strong market share in certain lines of business, such as motor vehicle (6.4%), fire (5.4%), and homeowners (5%) insurance, as well as its prudent underwriting policies and a high level of distribution-channel diversification that has provided stability in its lines of business.

Moody's added, however, that these positive characteristics are still offset to a significant extent by the company's very high underwriting leverage, relatively poor quality investment portfolio, and significant systemic country-specific risk for Argentina.

Moody's upgrade of the ratings of HSBC-NYL Vida reflects its improvement in asset quality, profitability, and capitalization, in addition to the implied support from and integration with the HSBC group. After losses in the 2003 fiscal year, the company has shown significant earnings growth, with a reported ROE of 47% during the last four fiscal years. Commenting on the stronger capitalization, Moody's said that the ratio of equity to total assets grew from a very modest 5.9% in 2004 to its current level of 34.3%. These strengths are offset by the company's still weak asset quality and the significant systemic country-specific risk for Argentina.

Regarding HSBC-NYL Retiro, Moody´s affirmed the ratings because the benefit of the company's ownership, implied support and integration with the HSBC Group is mitigated by the fact that HSBC-NYL Retiro has suddenly lost a very significant portion of its future annuity business because of the recent regulatory changes to the private pension system in Argentina. The company's private pension retirement business is now in run-off, and the company must downsize its employee base and its expense structure given its lost business. Although Moody's expects one-time charges associated with the downsizing of the company, its profitability and capital adequacy should remain adequate. There is also much uncertainty in the near-term with respect to the company's initiatives to strengthen its other retirement business not affected by the pension reform, as well as some uncertainty around what the company's shareholders will decide to do with this company.

Based in Buenos Aires, during the first quarter of the 2008/09 fiscal year ended September 30th 2008, HSBC-La Buenos Aires reported a net profit of AR$10.3 million, up 4% relative to the same period in 2007. Net investment results rose from AR$4.6 million for the period ended September 30th 2007 to AR$13.9 million in this latest quarter, accounting for most of the 4% improvement in net income. This improved financial result more than made up for the decline in underwriting gains to AR$1.6 million, significantly down from AR$9.7 million in the previous year's result. Shareholders' equity rose by 7% to AR$154 million at September 30, 2008 from AR$144 million at the beginning of 2008/09 fiscal year.

Also headquartered in Buenos Aires, HSBC-New York Life Seguros de Vida reported a relatively small loss of AR$1.5 million, compared with the net profit of AR$60 million reported for the quarter ended September 30, 2007. The recent loss was driven by lower underwriting results which more than offset improved financial income. As a result, the company´s shareholders' equity declined by 1% to AR$149 million from AR$150 million as of June 30th, 2008.

Finally, during the first quarter of the 2008/09 fiscal year ended September 30th 2008, HSBC-New York Life Seguros de Retiro reported a net profit of AR$17.6 million, up 97% relative to the corresponding quarter in 2007. This improvement in profitability was driven by an increase in financial income. As a result, the company´s shareholders' equity rose by 6.7% to AR$278 million from AR$260 million at June 30th 2008.

NOTE: Moody´s national scale insurance financial strength ratings rank an enterprise's financial strength on a relative basis in comparison with other firms' within the same country. Such ratings are designed for use at the local (national) level, and they are not globally comparable. For Argentine companies, national scale ratings carry the identifier of ".ar". In contrast, global local-currency insurance-financial strength ratings indicate the relative credit risk of an insurance company on a globally comparable scale. In the case of ratings of insurers domiciled in a country with a speculative grade sovereign rating, such as Argentina, these ratings are the result of several factors: the political risk; the risk of a generalized debt moratorium; the weakness of the legal environment or framework; and the risk of interference in the functioning of the financial system. Taken together, the national scale and global local-currency ratings provide a more comprehensive opinion about the credit risk of the company. Moody's insurance financial strength ratings are opinions about the ability of insurance companies to punctually repay senior policyholder claims and obligations.

For more information, please visit our website at www.moodys.com/insurance.

Buenos Aires
Alejandro Pavlov
Vice President - Senior Analyst
Financial Institutions Group

Buenos Aires
Diego Nemirovsky
Analyst
Financial Institutions Group

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com