FIATC Mutua de Seguros y Reaseguros

The positive outlook on FIATC is based on the improvement in earnings while demonstrating a robust growth trend. We expect the company will continue to benefit from its competitive strength in Catalonia and maintain resilient capital adequacy over the next 12-24 months. Furthermore, the outlook also incorporates our expectation that FIATC's mutual funds will increase at least in line with its capital requirements. We could revise our outlook to stable over the next two years if the entity does not reduce its exposure to lower-quality instruments; its operating performance does not prove sustainable, leading to a material deterioration in earnings; or its capital position becomes volatile, contrary to our expectations. We could raise the ratings on FIATC over the next

...FIATC Mutua de Seguros y Reaseguros (FIATC) has been growing its revenue and profitability, both of which underpin its competitive strength, despite its limited size and market share. Net income increased to a record high of 17 million in 2021, driven by underlying earnings improvement in the health and motor business. We anticipate FIATC will post net income of around 14 million backed by a net combined ratio below 100% over 2022-2024. FIATC is a well-established and recognized mutual insurer in Catalonia, developing a niche franchise in health care and retirement services business. The mutual has a well-balanced insurance portfolio that includes health, property, motor, and life. A short-term single-premium life savings product called InverCapital has been the main growth driver. FIATC is also developing its health segment--it owns a hospital and retirement residencies, which enable it to provide tailored health solutions to its policyholders. Overall market share at a national level...

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