A.M. Best Affirms Rating for MAPFRE Re, Compania de Reaseguros, S.A.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 11, 2001 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the A+ (Superior) financial strength rating of MAPFRE MAPFRE Mutualidad Agrupación Propietarios Fincas Rústicas de España (Spanish insurance and financial institution) Re, Compania de Reaseguros, S.A. (Mapfre Re), Madrid, Spain. The rating reflects Mapfre Re 's superior capital strength, pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae position in the Spanish market, strong global name recognition and a return to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. earnings trends. It also considers management's prudent operating and successful distribution strategies, strong reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. protection and financial flexibility provided by its ultimate parent, MAPFRE Mutualidad de Seguros y Reaseguros. The company is a core subsidiary of Corporacion Mapfre S.A., and as such is critical to the parent's strategy and ongoing success and viability. Based on gross written premiums, Mapfre Re is the largest reinsurance company in Spain with a strong presence in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and has recently started investing in the United.States. It underwrites mostly non-life coverages through an extensive network of branches and subsidiaries. Additionally, it maintains a good relationship with brokers. In 2000, Mapfre Re's improved its results and increased net profits by 52% over the previous year, added 12% to shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. and reduced earnings reliance on realized capital gains. The company has strong capitalization indicators with a gross premium written to a policyholder - shareholder surplus ratio of 2 to 1 and a net premium written to policyholder - shareholder surplus ratio of 1 to 4. The group's conservative writings and reinsurance program effectively mitigate the impact of the company's catastrophe exposures, thus protecting its future earnings. Mapfre Re has begun an extensive internal business re-design program to further enhance its operating efficiencies and sustain its improving performance trends. Given management's experience with similar initiatives and the full support of its parent, A.M. Best expects a successful implementation of this program and good prospects for further performance improvements. Accordingly, A.M. Best has assigned a stable-rating outlook to Mapfre Re. Partially offsetting these strengths is the firm's limited worldwide profile, concentrated book of business and a highly competitive sector which still suffers from overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. . A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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