The ratings on Spain-based mutual insurer FIATC Mutua de Seguros y Reaseguros a Prima Fija (FIATC) reflect FIATC's good operating performance, adequate capitalization, and good competitive position. These factors are offset by Standard&Poor's Ratings Services' marginally negative view of corporate strategy and the company's weak risk management controls. After posting satisfactory performances in previous years, FIATC recorded a remarkable improvement in 2007, with bottom-line results increasing by more than 300% to €25 million chiefly on the back of tightened claims settlement controls and a portfolio cleanup. FIATC's operating performance is now good. Capital adequacy strengthened in 2007, and even after allowing for the relatively small absolute size of its capital base, FIATC's capitalization is adequate. Quality of capital
