OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit rating of “a” for MAPFRE PRAICO Insurance Company and an affiliate, MAPFRE Pan American Insurance Company, collectively known as the MAPFRE PRAICO Group (MPG). The outlook for each rating is stable. All companies are domiciled in San Juan, Puerto Rico.
The ratings reflect MPG's excellent capitalization, solid operating performance, long history of profitable underwriting results, established market presence within Puerto Rico and strong risk management practices. The ratings also reflect MPG's strong brand-name recognition within the Puerto Rico market and integral role as a member of MAPFRE S.A. (MAPFRE), one of the largest insurance groups in Spain.
Partially offsetting these positive rating factors is MPG's geographic risk concentration, which exposes capital to the potential for frequent and severe weather-related events. Additionally, MPG’s operating almost exclusively within Puerto Rico exposes results to potential judicial, regulatory and economic changes. Despite these concerns, the outlooks reflect MPG's excellent risk-adjusted capital position and solid operating results delivered over the long term.
A.M. Best believes the current ratings of MPG are properly positioned and does not anticipate upward movement over the near term. However, negative rating actions could occur if there were a sustained deterioration in underwriting and operating performance, an occurrence of a sudden large catastrophic event that materially hinders risk-adjusted capitalization, or if the group’s relationship to its parent changes in a manner that negatively affects the operations of the group.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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