• Sees “Improved Underwriting Earnings Diversification” as a driver for the new ‘A-‘ rating.
• Raises its issuer credit and insurer financial strength ratings on MAPFRE RE to ‘A+’, one notch above the Spanish sovereign rating.
Standard & Poor’s has improved the credit rating of the main entities of the MAPFRE Group as a result of the “effective implementation of restructuring measures”, which “enhances the Group’s underlying earnings diversification and competitiveness”, as explained by the ratings agency in a note made public today.
Specifically, S&P is raising the ratings on the group’s holding company MAPFRE S.A. and its senior unsecured bonds to ‘A-‘ from ‘BBB+’, along with the issuer credit and insurer financial strength ratings on MAPFRE RE, to ‘A+’ from ‘A’, so it is placed one notch above the rating of the Spanish sovereign bond.
Moreover, the agency expressly cites that “Mapfre Group’s international diversification makes it resilient to a hypothetical domestic sovereign stress situation”. ”Mapfre has been able to demonstrate”, argues the note from Standard & Poor’s, “its capacity to build a global business outside of Spain, mainly through its reinsurance business, as well as in Brazil and the U.S.”
S&P maintains a stable outlook for the new rating assigned to the Group, which reflects “our expectation that MAPFRE will remain focused on the profitable growth strategy, maintaining leadership positions in its main markets, with a solid technical performance and a capital position consistent with at least level ‘A’”.
S&P’s has also raised MAPFRE’s senior unsecured bonds to ‘A-‘ from ‘BBB+’, as well as its junior subordinated bonds to ‘BBB’ from ‘BBB-‘.