AM Best Upgrades Issuer Credit Rating of Solunion Seguros, Compañía Internacional de Seguros y Reaseguros S.A.

AMSTERDAM--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Solunion Seguros, Compañía Internacional de Seguros y Reaseguros S.A. (Solunion) (Spain). The outlook of these Credit Ratings (ratings) is stable.

Solunion is the operating holding company of the Solunion group of companies, a 50-50 joint venture between the MAPFRE group and Allianz Trade. Allianz SE is the ultimate parent of Allianz Trade.

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

The upgrading of the Long-Term ICR reflects increased ratings lift due to the continuously demonstrated strategic and operational support Solunion receives from its joint shareholders, which includes significant reinsurance support in the form of quota share arrangements and excess of loss protection.

Solunion’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which remained at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment is also supported by Solunion’s prudent reserving approach and conservative investment strategy. Solunion is highly dependent on reinsurance, but the associated risk is considered limited, as reinsurance arrangements are solely with the company’s shareholders.

Solunion has achieved positive net results consistently over recent years, reporting a return on equity of 11.5% at year-end 2024, as calculated by AM Best. In 2024, Solunion reported a profit before tax of EUR 24.7 million driven by solid technical profits. Solunion has continued to report good results at the end of June 2025. An offsetting factor is the uncertainty around the sustainability of the trade credit results in light of competitive and challenging market and economic conditions. However, AM Best notes the company’s ability to take prompt risk-mitigating actions on non-performing business, when required.

Solunion has a growing position as a trade credit and surety specialist in its selected operating markets. Although the portfolio is concentrated in Spain, Solunion’s expansion in Latin America provides increasing geographic diversification. Positive business profile factors include the company’s ability to leverage the trade credit expertise and capabilities of Allianz Trade, whilst accessing MAPFRE’s widespread and well-established distribution channels in its target markets.

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