A.M. Best Affirms Ratings of MAPFRE PRAICO Group.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of "a+" of MAPFRE PRAICO Group and its members, which consist of the lead company, MAPFRE PRAICO Insurance Company and its wholly owned subsidiary, MAPFRE Preferred Risk Insurance Company, as well as an affiliate company, MAPFRE Pan American Insurance Company, whose businesses are significantly reinsured by MAPFRE PRAICO Insurance Company. The outlook for all ratings is stable. All companies are domiciled in San Juan, Puerto Rico.

The ratings reflect MAPFRE PRAICO Group's strong capitalization, favorable operating performance and solid market presence in Puerto Rico. The positive rating factors are derived from the group's steady stream of investment income, strong underwriting results and favorable reserve development. The group maintains a conservative underwriting philosophy and comprehensive reinsurance program, which protect surplus from shock losses and enhance stability of earnings. In addition, the ratings reflect the group's solid brand name and integral role as a member of MAPFRE S.A., the largest insurance group in Spain.

Partially offsetting these positive rating factors is the group's geographic concentration of risk. As a property writer in Puerto Rico, the group's capital is exposed to frequent and severe weather-related events. In addition, the group is exposed to judicial, regulatory and economic concerns as evidenced by the economic recession that began in 2006 and continues to place pressure on the group's profitability. Nevertheless, MAPFRE PRAICO Group is one of the top three property writers on the island and continues to develop products and platforms that will benefit the organization's future earnings and capital appreciation.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.