Best's News


Best’s News & Research Service - October 21, 2020 11:19 AM (EDT)

AM Best Affirms Credit Ratings of MAPFRE México, S.A.

  • October 21, 2020 11:19 AM (EDT)
    print icon

Mexico City //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit Rating of “a+” and the Mexico National Scale Rating of “aaa.MX” of MAPFRE México, S.A. (MM) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

MM is a member of the MAPFRE S.A., which on a consolidated basis has a balance sheet strength that AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

MM’s ratings also reflect its strategic importance to and alignment with MAPFRE Internacional S.A., as well as the synergies and operating efficiencies derived from being a group member of MAPFRE S.A., the leading insurer in Spain.

MM’s ratings are derived from its solid risk-adjusted capitalization and underwriting strategy, as well as its competitive position in Mexico’s insurance industry and appropriate ERM practices. Partially offsetting these positive rating factors are uncertain prospective opportunities for growth in an unwinding economy that has been slowing since 2018.

MM operates as a composite insurer of life and non-life business and ranks among Mexico’s five-largest insurers, based on written premiums.

MM’s written premiums in 2019 presented stable growth after adjusting for the biannual property-liabilities policy of Petróleos Mexicanos (PEMEX), a state-owned oil and gas company that MM started underwriting in 2015 and renewed in 2019 for USD 502 million of premium.

Technical income during 2019 reflects continued adjustments in claims controls and pricing done within its main segments in conjunction with improved management expenses. Financial income continued to influence the net result positively, which for 2019 was MXN 286 million (USD 15 million). The company showed improvement in its operating performance at year-end 2019, posting a combined ratio slightly below 100%.

The very strong assessment for MM’s balance sheet strength, as measured on a consolidated basis, remains slightly dependent upon dividend payments to its holding company. In the medium term, AM Best expects continued fine-tuning in underwriting strategy to enhance net results and therefore the continued expansion of its capital base.

ERM practices are well-established and implemented throughout the company and closely follow those set by MAPFRE S.A. This integration has benefited the company’s implementation of Mexico’s Solvency II-type regulations.

If there are positive rating actions on MAPFRE S.A’s main operating subsidiaries, as a result of a change in the key rating fundamentals, including successfully expanding of its profile while maintaining strong operating performance and risk-adjusted capitalization, the ratings of MM will likely move in tandem. Conversely, if there are negative rating actions on the MAPFRE group, as a result of a sustained decline in operating performance below AM Best’s expectation for the strong assessment level, or a sustained deterioration in MAPFRE S.A.’s consolidated risk-adjusted capitalization, the ratings of MM would mirror those same actions.

A change in AM Best’s perception regarding the actual or perceived level of MM’s strategic importance to the MAPFRE group also could impact the company’s ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • AM Best Ratings on National Scale (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Oct. 13, 2017)

  • Catastrophe Analysis in AM Best Ratings (Oct. 13, 2017)

  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version March 5, 2020)

  • Understanding Universal BCAR (Version June 11, 2020)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.


  • Previous Rating Date: Dec. 17, 2019

  • Date Range of Financial Data Used: Dec. 31, 2014- June 30, 2020

This press release relates to rating(s) that have been published on AM Best’s website. For additional 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 AM Best’s Recent Rating Activity web page.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.



Mexico Spain Press Release A.M. Best Rating Services, Inc. Insurance Issuer Credit Rating Best's Credit Rating Action Rating Event


Latest News

More from Best’s News


Trending