Fitch Ratings on March 27 assigned a positive outlook and affirmed the financial strength rating of Mapfre La Centro Americana SA at AA-(slv).
The positive outlook reflects the positive trend in the insurer's technical performance and overall financial profile. Fitch expects the company to continue to provide an improvement in their accident rates and operating efficiency, which will lead the combined ratio to reach favorable levels compared to the market.
Meanwhile, the ratings affirmation considered the support given to the insurer by its parent and ultimate shareholder, MAPFRE SA. Both share the use of the brand and are integrated in terms of policies, products, risk management, reinsurance protection and the adoption of best corporate governance practices, Fitch said. In turn, there is an agreement stating that the insurer keep available the minimum capital resources required by local regulation.
In addition, the rating considers the insurer's appropriate technical potential and good performance, improved leverage ratios and above-average liquidity reserve coverage, as well as an appropriate reinsurance scheme in which the company operates.