A.M. Best Co. commented that tits financial strength rating of “A+” (Superior) and the issuer credit rating of “aa” of Mapfre Mutualidad de Seguros y Reaseguros (Mapfre Mutualidad) and the issuer credit rating of “aa-” of Corporacion Mapfre S.A. (Corporacion) remain unchanged following the proposal to restructure the insurance group.
Mapfre announced the restructuring last Thursday, (See IJ Website June 1). Standard & Poor’s has issued a similar announcement.
Mapfre S.A. (currently named Corporacion Mapfre S.A.) will become the parent company of all subsidiaries currently directly owned by Mapfre Mutualidad. Best also noted that “in addition, the motor portfolio of Mapfre Mutualidad will be transferred to a newly formed subsidiary, Mapfre Automoviles S.A., whose 100% shareholder will also be Mapfre S.A.
“The current mutual policyholders of Mapfre Mutualidad will be offered shares in Mapfre S.A. or a cash option. A.M. Best believes that even if all mutual policyholders exercise the cash option, the impact on the consolidated capitalization will be limited.”
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