A.M. Best Affirms Rating of Mapfre Reinsurance

July 7, 2003

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of the U.S.-based Mapfre Reinsurance Corporation (MRC) (Florham Park, N.J.). The rating outlook is stable.

The rating is based on A.M. Best’s continued view that MRC is strategically important to its immediate parent, Spain-based Mapfre Re, Compania de Reaseguros, S.A, which, in turn, benefits from its core status to Mapfre Mutualidad de Seguros y Reaseguros – both currently rated A+ (Superior) with a positive outlook – the ultimate parent to the Mapfre Group and commercially known as Sistema Mapfre.

The rating also recognizes MRC’s strong parental support evidenced by capital infusions and by a sound reinsurance protection that mitigates the company’s underwriting exposures. MRC maintains an excellent capital position reinforced by a net-worth maintenance agreement provided by Mapfre Re.

Offsetting these positive rating factors are MRC’s limited track record and its relatively small size in the highly competitive U.S. reinsurance market, which limits growth and consistency in operating performance.

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