The ratings on Spanish composite insurer FIATC, Mutua de Seguros y Reaseguros a Prima Fija, reflect its good capitalization, its strong franchise in health care and retirement services in the Spanish region of Catalonia, where it is the leading mutual insurer, and its good liquidity. These factors are offset by the company's lack of national scale and relatively small size, marginal non-life reserving, high reliance of capital adequacy on unrealized gains on properties, and the difficult economic and financial climate in Spain. We consider FIATC's capitalization to be good. It continues to benefit from small retained earnings surpluses, along with direct annual contributions of 2.5% of gross premiums written (GPW) to the company's mutual fund. According to Standard&Poor's
