A.M. Best Affirms Rating of Mapfre Mutualidad.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 2, 2003 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 financial strength rating of A+ (Superior) of Mapfre Mutualidad de Seguros y Reaseguros (Mapfre Mutualidad), Spain. At the same time, A.M. Best has assigned an "aa-" rating to the senior debt of Corporacion Mapfre, the group's stock company and subsidiary of Mapfre Mutualidad. The rating outlook has changed from stable to positive. The rating is based on Mapfre Mutualidad's superior risk-adjusted consolidated capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper , its excellent business position in Spain and 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 superior operating performance. An offsetting factor is the potential volatility of Mapfre Mutualidad's exposure to the Latin American markets. Superior risk-adjusted consolidated capitalisation--According to the A.M. Best capital model, capitalisation on a risk-adjusted basis is superior. Mapfre Mutualidad's capitalisation is supportive of the projected business growth, and no immediate extraordinary capital needs are envisaged. The group's balance sheet is moderately leveraged after a EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 275 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 314.2 million) debt issued in 2001. Excellent business position--As a group, Mapfre (commercially referred to as Sistema Mapfre) is the largest and leading insurance group in Spain with a 12% market share. Mapfre Mutualidad, the ultimate parent of the Mapfre group, is the leading motor insurance company in the domestic market. The group benefits from a very solid and well recognized brand, well diversified diversified (di·verˑ·s business mix and a superior multi-channel distribution network enhanced by the strategic alliance with Caja Madrid, a leading Spanish bank
Superior consolidated operating performance--Mapfre Mutualidad reported a five-year average return on equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) of 19.8%. Significantly, with the exception of Mapfre America Vida, all underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. entities returned a net profit in both 2001 and 2002. Non-life technical results were excellent with a combined ratio of 93% for 2002 (compared with 95.8% in 2001). Mapfre continues to streamline its global activities, maintaining a selective approach to underwriting and business expansion. Subsequently, A.M. Best expects ROE above 15% in the near term. 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion