A.M. Best Upgrades Ratings of MAPFRE Insurance Company of Florida; Affirms Ratings of MAPFRE U.S.A. Group and Its Members

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has upgraded the financial strength rating (FSR) to A+ (Superior) from A (Excellent) and the issuer credit rating (ICR) to “aa-” from “a+” of MAPFRE Insurance Company of Florida (MAPFREFlorida) (Miami, FL). The outlook for both ratings has been revised to negative from stable.

Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and ICRs of “aa-” of MAPFRE USA Group (MAPFRE USA) and its inter-company pool members. Additionally, A.M. Best has affirmed the ICR of “a-” and the debt rating of “a-” on $300 million 5.95% senior unsecured notes, due 2013 of MAPFRE U.S.A. Corp. The outlook for these ratings is negative. (See below for a detailed listing of the companies.)

MAPFRE Florida is a wholly owned subsidiary of The Commerce Insurance Company(CIC).CIC is a subsidiary of the holding company, MAPFRE U.S.A. Corp., and the lead company of MAPFRE USA’s inter-company pool. The subsidiaries of MAPFRE U.S.A. Corp. are ultimately owned by MAPFRE S.A.(MAPFRE)(Spain), a worldwide insurance and financial conglomerate with a presence in more than 40 countries. All companies above are domiciled in Webster, MA, unless otherwise specified.

The upgrading of the ratings for MAPFRE Florida reflect the support provided by MAPFRE, particularly the explicit support afforded through MAPFRE Florida’s participation in MAPFRE USA’s inter-company pooling agreement.

The revised outlook is consistent with that of MAPFRE USA and reflects the potential weakening in the consolidated risk-adjusted capitalization of MAPFRE, primarily due to its significant exposure to Spanish sovereign debt.

The FSR of A+ (Superior) and the ICRs of “aa-” have been affirmed for MAPFRE USA and its following inter-company pool members:

• The Commerce Insurance Company
• Citation Insurance Company (MA)
• Commerce West Insurance Company
• American Commerce Insurance Company
• State-Wide Insurance Company

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include “Rating Members of Insurance Groups” and “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
David Fidecaro
Senior Financial Analyst
(908) 439-2200, ext. 5420
[email protected]
or
Rick Decker
Assistant Vice President
(908) 439-2200, ext. 5423
[email protected]
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.