Best Comments on Mapfre Re Rating

December 5, 2003

A.M. Best Co. said its financial strength rating of A+ (Superior) of Spanish reinsurer Mapfre Re, Compania de Reaseguros S.A. remains unchanged following an announcement by the company that it had approved a capital increase of 150 million euros ($181 million). Best also maintained the company’s stable rating outlook.

Mapfre Re plans to raise the funds in the first four months of 2004 through a rights issue. “This will be primarily through a capital contribution from its largest shareholder, Corporacion Mapfre (current share of 83.3%),” said the bulletin.

“The capital injection is in line with A.M. Best’s growth expectations for Mapfre Re, which includes new business in its core Spanish-speaking markets, in addition to expansion in Europe and the United States,” it concluded.

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