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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 18, 2017 08:24 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of MAPFRE PRAICO Insurance Company and its affiliate, MAPFRE Pan American Insurance Company, collectively known as the MAPFRE PRAICO Group (MPG). The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in San Juan, Puerto Rico.
The rating affirmations reflect MPG’s excellent risk-adjusted capitalization, solid operating performance, long history of profitable underwriting results, established market presence within Puerto Rico and strong risk management practices. The ratings also reflect MPG’s strong brand-name recognition within its domestic market and integral role as a member of MAPFRE S.A., one of the largest insurance groups in Spain.
Partially offsetting these positive rating factors is MPG’s geographic risk concentration, which exposes capital to the potential for frequent and severe weather-related events. Additionally, MPG’s operating almost exclusively within Puerto Rico exposes results to potential judicial, regulatory and economic changes. Despite these concerns, the outlooks reflect MPG’s excellent risk-adjusted capital position and solid operating results delivered over the long term.
A.M. Best believes MPG’s current ratings are positioned properly and does not anticipate upward movement over the near term. However, factors that could cause downward movement in the ratings include: a sustained deterioration in underwriting and operating performance, the occurrence of a sudden large catastrophic event that materially hinders risk-adjusted capitalization, or if the group’s relationship to its parent changes in a manner that negatively affects the group’s operations.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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