A.M. Best Upgrades Issuer Credit Rating of MAPFRE RE, Compañía de Reaseguros, S.A.
The ratings reflect MAPFRE RE’s balance sheet strength, which
The Long-Term ICR upgrade reflects MAPFRE’s improved rating fundamentals, characterised by a very strong balance sheet, a strong operating performance, with solid earnings from its Spanish insurance and global reinsurance operations, and a favourable business profile. The sustained improvement in Spain’s macroeconomic conditions over recent years also has benefitted the group’s rating fundamentals positively.
MAPFRE RE’s balance sheet strength is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), prudent reserving practices, and a conservative investment portfolio. The company’s capital position has furthermore proven resilient, due to its solid expertise in catastrophe modelling and risk management protecting it from potential volatility introduced by catastrophe events, as demonstrated in 2017. A partially offsetting factor is MAPFRE RE’s moderate dependence on retrocession, with a retention rate relatively lower than peers. Nonetheless,
MAPFRE RE has a track record of generating strong and stable operating results, as evidenced by a five-year (2013-2017) weighted average return on equity of 12.6% (as calculated by
MAPFRE RE is an established player in the reinsurance market having been established initially as the MAPFRE group’s internal reinsurer. The company has good product and geographical diversification with a portfolio well balanced between group and third-party business. The planned internal restructuring of MAPFRE’s global risks business unit, that should see the business of MAPFRE GLOBAL RISKS, Compañía Internacional de Seguros y
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
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