AM Best has affirmed the Financial Strength Rating of A- (Excellent), the Long-Term Issuer Credit Rating of “a-” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Stewart Title Guaranty de México, S.A. de C.V. (STGM) (Mexico). The outlook of these Credit Ratings (ratings) is stable.

STGM is a member of Stewart Title Group (Stewart), which on a consolidated basis has a balance sheet strength that AM Best assesses as very strong, as well as adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the integration of STGM into its parent company, Stewart Title Guaranty Company (STGC) (Houston, TX), and into the group in terms of business model and operational support.

In addition to Mexico, STGC offers products through its subsidiaries to markets in the United States, the European Union, Australia, Costa Rica and China. Given the specialized nature of the title insurance product and the institutional strategy, STGM’s sales efforts focus on business referred by STCG on existing customers, which generates a limited number of policies per year.

The company has experienced a downward growth trend in its capital and surplus, driven by dividend payments from accumulated retained earnings. Support from STGC in the past has come through capital injections, with the most recent one in 2012, directed to help strengthen the business when required.

STGM’s book of business has contracted for third consecutive year; however, its flexible cost structure continues to provide significant advantages that allow it to optimize expenses and achieve positive bottom-line results, further strengthened by investment income.

For year-end 2025, AM Best expects STGM to maintain its operating performance, supported by its referred business system, while continuing to achieve good underwriting metrics.

Negative rating action could occur if challenges from high interest rates and a slowing economy result in a significant decline in operating profitability and/or a material decline in risk-adjusted capitalization levels. Additionally, if negative rating actions are taken on the holding company, as a result of liquidity issues or a significant increase in leverage, the ratings of STGM would move in tandem.

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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