Best Puts Spain’s Mapfre Empresas Under Review/Negative

November 17, 2006

A.M. Best Co. announced that it has placed the financial strength rating of “A” (Excellent) of Spanish insurer and reinsurer Mapfre Empresas Compania de Seguros y Reaseguros S.A. “under review with negative implications.”

Best said the rating action reflects its “concerns about the level of Mapfre Empresas’ risk-adjusted capitalization as a result of stronger than anticipated premium growth.”

However, Best also acknowledged “that Mapfre Mutualidad, the ultimate parent company of Mapfre Empresas, is currently in a restructuring process (see related press release of 2 June 2006), which includes a review of internal capital requirements for Mapfre Mutualidad’s main subsidiaries” (See IJ Website June 5).

Best said it would “discuss with Mapfre Empresas’ management the steps it plans to take to restore capital to a level commensurate with its current rating,” and that it “aims to resolve the under review as soon as possible.”

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