Fitch Ratings on Nov. 29 affirmed the national ratings of MAPFRE Seguros Generales de Colombia SA and Mapfre Colombia Vida Seguros SA at AA(col) and AA-(col), respectively.
The outlook for the rating of MAPFRE Seguros Generales de Colombia is negative while that of Mapfre Colombia Vida Seguros is stable.
MAPFRE Seguros Generales de Colombia's rating reflects the improvement in its operating performance and profitability as of September, which will continue to be driven by a profitable growth strategy based on a consistent business model and the implementation of specific actions. Fitch also expects the insurer's capitalization will persist adequately, due to an injection of capital that will be registered at the end of 2017 which will mitigate the impact on the results of various adjustments in reserves and others.
However, the insurer's rating outlook remains negative due to the expected challenge of continuing to consolidate its strategy with a focus on technical profitability.
Meanwhile, the affirmation of Mapfre Colombia Vida Seguros' rating is based on the stability and gradual improvement of its operation, mainly due to the strategic refocusing on target lines. Additionally, the positive result in the insurer's internal generation of resources was reflected in an improvement in the leverage indicators. However, there are still high challenges in terms of profitable growth and consolidation of regulatory adjustments that could continue to have an impact in the short term, Fitch said.
The banks' ratings also consider the partial benefit of support from their owners, MAPFRE SA.
