Credit rating agency Fitch Ratings has announced an upgrade to Mapfre’s long-term issuer rating, which moves from 'A' to 'A+', and also gives it an "stable" outlook, as the firm itself communicated this Thursday.
This rating increase is due to the growing international diversification of the insurance group, which will be further strengthened once the acquisition of Safety in the United States is closed. As a result of the growing relevance that the external business has acquired within the group, Fitch has decided to adjust the analytical framework it uses to evaluate the company.
At the same time, the agency maintains without change the insurer’s financial strength rating at 'AA- (very strong)', supported by Mapfre’s business profile, its level of capitalization, and the evolution of its financial results.
Looking at the medium term, Fitch considers a possible new rating upgrade if Mapfre increases its size and maintains a return on equity of 15%, along with a Solvency II ratio above 230%. By contrast, the agency would consider a downgrade in the event that profitability falls below 7%, the combined ratio exceeds 98%, or the Solvency II ratio is set at below 170%.