The ratings agency Fitch has upgraded MAPFRE’s core operating subsidiaries’ Insurer Financial Strength (IFS) ratings to ‘A’ from ‘A-’, which translates into ratings improvements for four insurance entities: MAPFRE ESPAÑA, MAPFRE VIDA, MAPFRE RE and MAPFRE GLOBAL RISKS. This decision follows the upgrade of Spain’s sovereign ratings a few days ago. Furthermore, Fitch has affirmed MAPFRE’s Issuer Default Rating (IDR) at ‘A-‘, with outlook stable.
The agency explains in its note that MAPFRE Group’s financial strength rating is limited by the weight of the Spanish economy in its business and in the Group’s assets. Without this limitation, MAPFRE’s financial strength rating would be ‘A +’, reflecting “the strength and resilience of its financial results, and its strong capital position”.
Likewise, Fitch highlights the effectiveness of the company’s reinsurance program, which has significantly reduced the impact on the Group accounts of the natural disasters that occurred during 2017.