A.M. Best Downgrades Ratings of Mapfre Insurance Company (F/K/A Mapfre Reinsurance Corporation).OLDWICK, N.J. -- A.M. Best Co. has downgraded 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. ) to A- (Excellent) from A (Excellent) and the 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. to "a-" from "a" of Mapfre Insurance Company (F/K/A F/K/A Formerly Known As Mapfre 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. Corporation) (Mapfre Insurance) (Florham Park, NJ). The outlook for both ratings is stable. The ratings reflect Mapfre Insurance's strong risk-adjusted capitalization, which on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis and after considering various stress test scenarios, remains in the excellent range over a five-year time period. This favorable capital position is further augmented by Mapfre Insurance's sound business plan in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the explicit support provided it as a member of MAPFRE S.A., a leading insurer in Spain. Mapfre Insurance will begin writing primarily personal automobile coverages in Arizona in 2007, capitalized with $25 million in surplus. Partially offsetting these positive rating factors is the execution risk associated with Mapfre Insurance's business plan. As a new company, Mapfre Insurance will experience significant start-up costs, although somewhat offset by the synergy benefits associated with the planned infrastructure and operational services shared with an affiliated company, MAPFRE Insurance Company of Florida (Miami, FL). The initial funding of Mapfre Insurance by MAPFRE S.A. provides a solid capital base that should adequately support the business plan and strengthen Mapfre Insurance over time. A.M. Best will closely monitor the quarterly performance of Mapfre Insurance against its stated operating plan. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion