Research Update: FIATC Ratings Affirmed At 'BBB+'; Outlook Remains Positive On Prospects Of Improving Profitability

Spain-based mutual insurer FIATC, Mutua de Seguros y Reaseguros (FIATC) posted weaker-than-previously expected earnings for 2022 due to higher inflation and larger claims in the property/casualty (P/C) sector, mainly in the motor, multi-risk, and health business. However, we believe the group has taken effective measures to address this and expect earnings to improve over the next few years, consistently reinforcing its growth and capital base. We are therefore affirming our 'BBB+' long-term ratings on FIATC. The outlook remains positive, indicating that we could upgrade FIATC in the next 12 months if it continues to expand its premium base while improving its profit margins and reinforcing its capital base. On May 25, 2023, S&P Global Ratings affirmed its 'BBB+' long-term insurer

...To From Financial strength rating ###+/Positive ###+/Positive Anchor ###+ ###+ Business risk Satisfactory Satisfactory IICRA Low Low Competitive position Satisfactory Satisfactory Financial risk Strong Strong Capital and earnings Strong Strong Risk exposure Moderately low Moderately low Funding structure Neutral Neutral Modifiers 0 0 Governance Neutral Neutral Liquidity Adequate Adequate Comparable ratings analysis 0 0 Support 0 0 Group support 0 0 Government support 0 0...

Research Update