Good operating performance Good competitive position Marginal reserving The ratings on Spain-based mutual insurer FIATC, Mutua de Seguros y Reaseguros a Prima Fija (FIATC) reflect its good operating performance and good competitive position. These factors are offset by the company's marginal reserving. We regard FIATC's overall operating performance as good. Following recent years' improvements in underwriting results, 2008 earnings were negatively affected by unrealized investment losses that reduced the bottom-line result to €8 million from €25 million in 2007. Nevertheless, the published net combined ratio worsened only slightly to 100.1% from 98.6% due to higher acquisition costs. The published loss ratio has been virtually stable at 77% in 2008, although benefiting from reserve releases. Adjusting these ratios for the 2.5%
