FIATC Mutua de Seguros y Reaseguros

The positive outlook reflects our expectation that FIATC will continue to improve its earnings and expand robustly. We anticipate that 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 raise the ratings on FIATC over the next year if the company reduces the share of higher risk fixed-income assets and if; FIATC demonstrates the robustness of its franchise by consistently exceeding Spanish market growth rates while returning to its strong earnings track record; or Capital adequacy were to improve to the extent it would

...FIATC Mutua de Seguros y Reaseguros (FIATC) is a well-established and recognized mutual insurer in Catalonia, developing a niche franchise in health care and the retirement services business. The mutual has a well-balanced insurance portfolio that includes health, property, motor, and life. 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 is small at about 1.3%, however. We expect FIATC's financial strength will prove resilient, mainly supported by its positive earnings and its members' direct contributions to mutual funds. FIATC displayed a solid level of capital in the '##' range in 2022 according to our risk-based capital model. We assume this will continue in 2023-2025 despite the company's growth ambitions. We expect the company's improving net results and members' contribution to mutual funds in line with previous years (around...

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