S&P Assigns Mapfre Empresas ‘AA’ Rating

Standard & Poor’s Ratings Services announced that it has assigned its “AA” long-term counterparty credit and insurer financial strength ratings to Spain-based Mapfre Empresas, Compañía de Seguros y Reaseguros, S.A. (Mapfre Empresas), a subsidiary of Spanish insurance group Sistema Mapfre (the Mapfre group), with a stable outlook.

Concurrently with the rating action, S&P withdrew its ‘BBBpi’ public information-based counterparty credit and insurer financial strength ratings on Musini, S.A. de Seguros y Reaseguros, also a subsidiary of the Mapfre group.

The bulletin noted that “Mapfre Empresas (previously known as Musini) is the principal operating company of a newly formed unit specializing in the insurance of large corporates/industrial risks. The new unit also includes Mapfre Industrial (not rated) and Mapfre Caución y Crédito (not rated).”

“The ratings on Mapfre Empresas reflect its Core status within the Mapfre group. Stand-alone characteristics are its very strong operating performance, strong competitive position, and good current capitalization,” stated S&P credit analyst Peter McClean. “These positive factors are offset by a heavy dependency on reinsurance, a relative lack of an operating track record under its new identity, and a marginal competitive position outside its domestic market.”

S&P said the “stable outlook on Mapfre Empresas reflects that on the parent, Mapfre Mutualidad de Seguros y Reaseguros a Prima Fija (AA/Stable/–). It also reflects Standard & Poor’s expectation that capitalization will improve to stronger levels.”