The word from MAPFRE as Fitch upgrades their rating;
The credit rating agency Fitch has upgraded MAPFRE’s credit rating, assigning an ‘A’ issuer rating, up from ‘A-’, with a stable outlook, thanks to the company’s improved business performance and positive earnings forecasts. Fitch also raised MAPFRE Asistencia’s financial strength rating from ‘A’+ to ‘AA-’.
In a note published this Tuesday, Fitch justified the upgrade by noting “the sustained improvements of MAPFRE in its financial performance, while the group continues to maintain its leading competitive position in Spain and Latin America, as well as its solid capitalization.”
Regarding MAPFRE’s results, Fitch highlighted the improvements in the company’s combined ratio and ROE, which is why it believes that MAPFRE will be able to achieve “solid profits in 2025 and 2026.” Likewise, it mentioned MAPFRE’s strong position in the Spanish markets, where it is the leading insurance company in Non-Life, and in Latin America, particularly Brazil. The great diversification of MAPFRE by geographic areas and business lines is positive for the stability of its revenue, Fitch affirmed.
Other highlights of the rating agency were the robust capitalization of the MAPFRE Group, a stable level of debt below 20%, and the moderate risk of its investments.
This Fitch rating upgrade comes after the agency had already decided in March to change the outlook from stable to positive. Standard & Poor’s also upgraded the outlook to positive, from stable, in July of this year. It currently maintains its rating at ‘A-.’
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