AM Best Affirms Credit Ratings of MAPFRE S.A.’s Rated Operating Subsidiaries

AMSTERDAM--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of MAPFRE S.A.’s (MAPFRE) rated operating subsidiaries. The outlook of these Credit Ratings (ratings) is stable. See below for a detailed listing of companies and ratings.

The ratings reflect MAPFRE’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

MAPFRE’s balance sheet strength is underpinned by risk-adjusted capitalisation that exceeds the level required to support the strongest assessment, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the group’s risk-adjusted capitalisation to be maintained at the strongest level prospectively, supported by MAPFRE’s strong internal capital generation and conservative investment portfolio. A partially offsetting factor is MAPFRE’s moderate dependence on retrocession; however, the risk associated with this dependence is partly mitigated by the credit quality of the retrocession panel, which remains excellent, with the majority of reinsurance recoverables held with highly rated counterparties.

MAPFRE’s operating performance is strong, demonstrated by the 10-year (2011-2020) weighted average return-on-equity and operating ratios of 11% and 91%, respectively (as calculated by AM Best). In 2020, MAPFRE delivered a net profit of EUR 820.7 million (2019: EUR 955 million), driven primarily by the insurance segment. For the first half of 2021, the group reported a net profit of EUR 490 million (half-year 2020: EUR 406 million). Operating profitability continues to be supported by healthy investment income.

MAPFRE is a multinational insurer and reinsurer, with excellent product and geographic diversification. Through its subsidiaries, MAPFRE provides insurance, reinsurance, assistance and global risks products worldwide. The group’s strong franchise and long-standing client relationships allow MAPFRE to maintain its position in key target markets. Through its reinsurance subsidiary, MAPFRE is well-positioned to benefit from improved property/casualty reinsurance market conditions.

The FSR of A (Excellent) and Long-Term ICRs of “a+” (Excellent) have been affirmed, with a stable outlook, for the following operating subsidiaries:

• MAPFRE RE, Compañía de Reaseguros, S.A.
• MAPFRE España, Compañía de Seguros y Reaseguros S.A.
• MAPFRE Panamá S.A.
• MAPFRE PRAICO Insurance Company
• MAPFRE Pan American Insurance Company

The FSR of A (Excellent), the Long-Term ICRs of “a+” (Excellent), and Mexico National Scale Rating of “aaa.MX” (Exceptional) have been affirmed, with a stable outlook, for the following operating subsidiaries:

• MAPFRE Fianzas, S.A.
• MAPFRE México, 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 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 www.ambest.com.

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