AM Best has upgraded the Long-Term Issuer Credit Rating to "a+" from "a" and affirmed the Financial Strength Rating of A (Excellent) and the Mexico National Scale Rating of "aaa.MX" to MAPFRE Fianzas SA (MF) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect MF's balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The Long-Term ICR upgrade reflects MF's strategic importance to, and strategic 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. The ratings also reflect MF's role as a complementary business line of MAPFRE MÉXICO S.A. (MM), as well as MF's good risk-adjusted capitalization, adequate profitability as of December 2017 and solid reinsurance program. Partially offsetting these positive rating factors are the company's exposure to contingent claims and low participation within the surety market. While MF is a legal subsidiary of MM, its strategy and operations are directed as a boutique business line focused on maintaining market presence and complimenting the services provided by its immediate parent. The company is the 15th largest surety writer in Mexico, based on gross premium written, with its portfolio composed of 86.8% administrative, 10.7% judicial, 1.7% credit and 0.8% fidelity. MF's corporate practices are in line with MM and MAPFRE S.A.
Source: A.M. Best Ratings Services, Inc. Used under license.