A.M. Best Affirms and Assigns Ratings to MAPFRE Insurance Company of Florida.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and has assigned an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" to MAPFRE MAPFRE Mutualidad Agrupación Propietarios Fincas Rústicas de España (Spanish insurance and financial institution) Insurance Company of Florida (Mapfre Florida) (Miami, FL). The outlook for the FSR is stable, and the outlook assigned to the ICR is stable. The affirmation of MAPFRE Florida's ratings reflects its improved overall risk-adjusted capitalization and its improved operating performance. The ratings also recognize the explicit support provided the company as a member of MAPFRE S.A. This support is reflected in MAPFRE INTERNATIONAL's capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. of $10 million in 2006 to MAPFRE Florida, to stabilize surplus as well as a 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 through an affiliate, Mapfre Re Compania de Reaseguros S.A. (Spain). Partially offsetting these positive rating factors is MAPFRE Florida's geographic concentration and historically unfavorable operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . With all of its business generated in Florida, MAPFRE Florida is susceptible to catastrophic loss accumulation as well as regulatory challenges and competitive market conditions. In response, management has undertaken expansion initiatives to balance its book of business throughout Florida and has introduced a new personal automobile product. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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