A.M. Best Affirms Ratings of Mapfre Mutualidad and Mapfre Asistencia.

Business Editors

A.M. Best Co. has affirmed the financial strength ratings of A+ (Superior) of Mapfre Mutualidad de Seguros y Reaseguros (Mapfre), Madrid, Spain, and its core specialized assistance subsidiary, Mapfre Asistencia Cia. Internacional de Seguros y Reaseguros S.A.

The ratings are based on the group's consolidated superior risk-adjusted capital base, its excellent business position in Spain and Latin America and improved operating performance. Offsetting these strengths is the potential volatility of Mapfre's exposure to the Latin American markets. The ratings outlook is stable.

Superior risk-adjusted capitalization according to the A.M. Best capital model--The bulk of the group's funds is within the ultimate parent, Mapfre Mutualidad, although all subsidiaries are adequately capitalized. The group's balance sheet is moderately leveraged after a EUR 275 million (USD 244 million) debt issued partially to finance the acquisition of Finisterre SA Cia de Seguros y Reaseguros, a Spanish funeral expenses company, in 2001 and also to finance capital contributions to subsidiaries within the group. In addition, Mapfre has substantial economic value embedded within its life business, which has not been credited in the capital model. A.M. Best believes the group's capitalization is supportive of the projected business growth, and no immediate extraordinary capital needs are envisaged.

Excellent business position--Mapfre Mutualidad, the ultimate parent of the Mapfre Group, is the leading motor insurance company in the domestic market. Mapfre Asistencia provides road, home and travel assistance services and operates in 35 countries with a total premium of EUR 145.9 million (USD 129.3 million). As a group, Mapfre--which is commercially referred to as Sistema Mapfre--is the largest and leading insurance group in Spain with a 13% market share. The group benefits from a very solid and well recognized brand, well diversified business mix and a superior multi-channel distribution network enhanced by the strategic alliance with Caja Madrid, a leading Spanish bank. Moreover, Finisterre has provided Mapfre access to an additional three million policyholders. In Latin America, Mapfre enjoys an excellent presence where it operates via multiple subsidiaries consolidated under Mapfre America and Mapfre America Vida, the former a fully owned subsidiary of Mapfre Mutualidad.

Very good operating performance--With a five-year average return on surplus of 12%, reported consolidated revenues and profit before taxes increased by 29% and 47% to EUR 8.9 billion (USD 7.9 billion) and EUR 316 million (USD 280 million), respectively, at year-end 2001. This was largely attributable to outstanding results in Mapfre Seguros Generales, improvement in Mapfre America (Vida and no Vida) and profits after taxes of EUR 245 million (USD 217 million). During 2001, the devaluation of the Argentine peso reduced consolidated shareholder's equity by EUR 17.41 million (USD 15.43 million). In Venezuela, premium grew by 23% in local currency, but the devaluation of the Bolivar reduced this growth only by 5.9%. Consolidated results have been negatively impacted by the weak results of the reinsurance subsidiary. Non-life technical results were excellent with a combined ratio of 95.8% at year-end 2001. The successful integration of the Caja Madrid insurance portfolio (life and non-life) assisted in reducing expenses.

Expectations:

- Capital, on a risk-adjusted basis, will be maintained at a superior level, and leverage will continue to be low and in line with the tolerance levels worthy of an A+ (Superior) rating.

- Mapfre will remain as the leader in the Spanish market and will experience solid premium growth and improvement in its consolidated performance.

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.