Research Update: Mapfre Group Ratings Affirmed Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). Under our updated criteria, Mapfre group's capital and earnings, albeit better, remain strong. There is no effect on our ratings on the group's nonoperating holding company Mapfre S.A., or the core operating entity Mapfre Re. We have therefore affirmed our issuer credit and insurer financial strength ratings on Mapfre Re at 'A+'. We also affirmed the ratings on Mapfre S.A. and its senior unsecured bonds at 'A-', as well as its subordinated bonds at 'BBB'. The stable outlooks reflect our expectation that Mapfre will remain focused on profitable growth, with solid technical performance and capital adequacy at least at

...Key strengths Key risks A well-recognized international insurance brand maintaining leading positions in Spain and Latin America. Global macroeconomic uncertainties are putting pressure on technical performance, especially in the motor business. Resilient earnings thanks to strong geographic and business diversification. Moderate premiums and earnings sensitivities to currency fluctuations mainly stem from operations in emerging markets. Closely matching assets and liabilities limits the volatility of solid capitalization, as measured by our risk-based capital model....

Research Update