A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of "a" and the Mexico National Scale Rating of "aaa.MX" of MAPFRE MÉXICO, S.A. (MAPFRE MÉXICO) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) remains stable. A.M. Best has also affirmed the FSR of A (Excellent), the Long-Term ICR of "a" and the Mexico National Scale Rating of "aaa.MX" of MAPFRE Fianzas, S.A. (Mexico City, Mexico). The outlook of these Credit Ratings is stable. Concurrently, A.M. Best has withdrawn the ratings of both companies, as they have requested to no longer participate in A.M. Best's interactive rating process.
The ratings of MAPFRE MÉXICO and MAPFRE Fianzas recognize each company's affiliation with its immediate parent, MAPFRE America, S.A., as well as the synergies and operating efficiencies derived from being a group member of MAPFRE S.A., the leading insurer in Spain.
MAPFRE MÉXICO's ratings reflect its solid risk-adjusted capitalization, its competitive position in Mexico's insurance industry and adequate enterprise risk management practices. Offsetting these positive rating factors is the deterioration in MAPFRE MÉXICO's operating performance in 2016, stemming from its previous strategy to expand its market share.
The ratings on MAPFRE Fianzas reflect its role as a complementary business line of MAPFRE MÉXICO, good risk-adjusted capitalization, improved profitability as of December 2016 and solid reinsurance program. Partially offsetting these positive factors are the company's operating performance in relation to the market, its exposure to contingent claims and its premium leverage.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- A.M. Best's Ratings on a National Scale (Version Sept. 5, 2014)
- Analyzing Insurance Holding Company Liquidity (Version Mar. 25, 2013)
- Catastrophe Analysis in A.M. Best Ratings (Version Nov. 3, 2011)
- Evaluating Non-Insurance Ultimate Parents (Version Feb. 24, 2012)
- Evaluating Country Risk (Version May 2, 2012)
- Insurance Holding Company and Debt Ratings (Version May 06, 2014)
- Rating Members of Insurance Groups (Version Dec. 15, 2014)
- Rating Surety Companies (Version Aug. 13, 2014)
- Risk Management and the Rating Process for Insurance Companies (Version April 2, 2013)
- Understanding Universal BCAR (Version May 01, 2017)
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best's Credit Ratings.
MAPFRE MÉXICO:
- Previous Rating Date: Nov. 30, 2016.
- Date of Financial Data Used: May 31, 2017.
MAPFRE Fianzas:
- Previous Rating Date: Nov. 30, 2016.
- Date of Financial Data Used: May 31, 2017.
This press release relates to rating(s) that have been published on A.M. Best's website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page.
A.M. Best does not validate or certify the information provided by the client in order to issue a credit rating.
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. A.M. Best does not audit the company's financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, A.M. Best cannot attest as to the accuracy of the information provided.
A.M. Best's credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.
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A.M. Best
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Senior Financial Analyst
eli.sanchez@ambest.com
or
Alfonso Novelo, +52 55 1102 2720, ext. 107
Senior Director, Analytics
alfonso.novelo@ambest.com
or
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christopher.sharkey@ambest.com
or
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Director, Public Relations
james.peavy@ambest.com
