Insurance industry credit rating agency AM Best has affirmed a financial strength rating (FSR) at A (excellent) and a long-term issuer credit rating (ICR) at a + (excellent) for MAPFRE SA’s operating subsidiaries with a rating.
According to AM Best, the outlook on the credit ratings is stable.
“In addition to the pride that these financial strength and stability ratings give us, it motivates us to continue to work with a focus on continuing to provide our clients with the safety and confidence that we have the ability to pay when hiring our services.” – he said. President of MAPFRE de Puerto Rico, Alexis Sanchez
“These ratings reflect the strength of MAPFRE’s balance sheet, which AM Best considers very solid, in addition to stable operating performance, a favorable business profile and adequate integrated risk management (ERM),” he added.
Sanchez explained that the strength of the balance sheet is supported by risk-adjusted capitalization, which is above the level required to support the most reliable estimate as measured by the Best’s Capital Adequacy Index (BCAR).
“AM Best expects the group’s risk-adjusted capitalization to remain at its highest in the future, thanks to MAPFRE’s solid domestic capital generation and its conservative investment portfolio,” Sanchez said.
The insurer’s president explained that part of the offsetting factor for these ratings is “MAPFRE’s moderate dependence on restitution; however, the risk associated with this dependence is partially mitigated by the credit quality of the retrocession panel, which remains excellent as most of the recoverable reinsurance is carried out with highly rated counterparties. ”
Likewise, he reiterated that “MAPFRE’s operating performance is stable,” and stated that this is demonstrated by the 10-year weighted averages of profitability and operation (2011-2020) of 11% and 91% respectively (as calculated by AM Best).
In 2020, MAPFRE generated a net profit of 820.7 million euros (951.9748 USD), while in 2019 it amounted to 955 million euros (1108.70 USD), mainly due to the insurance segment.
For the first half of 2021, the group reported a net profit of € 490 million (548.31).
Operating profitability continues to be supported by significant investment income.
MAPFRE is an international insurance and reinsurance company with excellent geographic and product diversification. Through its subsidiaries, MAPFRE offers insurance, reinsurance, assistance and global risk products worldwide. The group’s strong franchise and longstanding customer relationships allow MAPFRE to maintain its position in key target markets.
With its subsidiary reinsurance company, MAPFRE is well positioned to benefit from improved conditions in the P&C reinsurance market.