The ratings agency maintains the A+ rating with a stable outlook
The Fitch agency has decided to maintain MAPFRE’s financial strength credit rating at A+, with a stable outlook, due to the “strength of MAPFRE’s business profile, and solid capital levels and earnings”.
The rating agency explains in its note that MAPFRE’s business profile “compares favorably with other insurance groups based in Europe. MAPFRE has a very strong market position in Spain, where it is the leader in the non-life segment, and in Latin America, especially in Brazil. ”
Regarding the impact of covid on the company’s balance sheet, Fitch observes risks derived from an increase in credit spreads and on the evolution of the short-term investment portfolio. However, Fitch expects the overall impact of the coronavirus to be “manageable for MAPFRE due to its strong capital position”, and expects MAPRE’s technical profitability to remain “strong”.