S&P Withdraws Some Ratings on Spain’s Mapfre after Restructuring

Standard & Poor’s Ratings Services has withdrawn its “AA” long-term counterparty credit and insurer financial strength ratings on Spain’s Mapfre Mutualidad de Seguros y Reaseguros a Prima Fija (Mapfre Mutualidad), following the corporate restructuring of the Spanish Mapfre insurance group (Sistema Mapfre). S&P also noted that “Corporación Mapfre S.A. (AA-/Stable/–), the downstream listed holding company for the group, has been renamed Mapfre S.A.” as a result of the restructuring.

“The rating withdrawal follows the completion of the previously announced restructuring, whereby all group operating activities are to be integrated under the listed holding company, Mapfre S.A.” S&P explained. “Inherent in this transaction is the transfer to Mapfre S.A. of the operating units of Mapfre Mutualidad and the dissolution of the latter company, involving a return of up to €384 million capital to mutual policyholders in the form of either cash or shares in Mapfre S.A.

“The ratings and outlooks on the Mapfre group’s core subsidiaries–Mapfre Re Compañía de Reaseguros, S.A. (Mapfre Re; AA/Stable/–) and Mapfre Empresas, Compañía de Seguros y Reaseguros, S.A. (AA/Stable/–)–remain unchanged, as do the ratings and outlook on Mapfre Re’s U.S.-based subsidiary–Mapfre Reinsurance Corp. (AA-Negative/–).”