The ratings reflect MAPFRE Tepeyac’s solid risk-adjusted capitalization, its competitive position in Mexico’s insurance industry and adequate enterprise risk management practices.
The ratings also recognize MAPFRE Tepeyac’s affiliation with its immediate parent,
The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, remains strong and supportive of the current ratings. Mexico’s newly adopted regulatory capital requirements might leave room for capital outflows to the parent given lower capital requirements on fronting transactions, such as the policy for PEMEX, a state-owned oil and gas producer that is Mexico’s largest company. When accounting for these possible capital outflows, A.M. Best’s view is that the company’s capital adequacy remains supportive of the current ratings.
MAPFRE Tepeyac’s written premiums grew 64.2% during 2015, mainly driven by underwriting PEMEX’s biannual property-liabilities policy, which took place in
Enterprise risk management practices are well-established and implemented throughout the company and closely follow those set by MAPFRE S.A. This integration has benefited the company in the adopting Mexico’s new Solvency II type regulations.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- A.M. Best’s Ratings on a National Scale (Version
Sept. 5, 2014)
- Catastrophe Analysis in A.M. Best Ratings (Version
Nov. 3, 2011)
- Evaluating Country Risk (Version
May 2, 2012)
- Rating Members of Insurance Groups (Version
Dec. 15, 2014)
- Risk Management and the Rating Process for Insurance Companies (Version
April 2, 2013)
- Understanding Universal BCAR (Version
April 28, 2016)
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to “Understanding Best’s Credit Ratings.”
- Previous Rating Date:
Sep. 24, 2015.
- Date of Financial Data Used:
Sep. 30, 2016.
This press release relates to rating(s) that have been published on
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed.
A.M. Best’s credit ratings are independent and objective opinions, not statements of fact.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
Elí Sánchez, +52 55 1102 2720, ext. 108
Manager, Public Relations
Director, Public Relations