S&P revises Mapfre's outlook to positive on improving capital and earnings generation

(The Insurer) - S&P Global Ratings has revised its outlook of Spain-based insurer Mapfre Group to positive from stable, reflecting improving capital and earnings generation and an expectation of structural consolidation of the group's capital adequacy above the 99.95% confidence level according to its model.

S&P also said that it expects the level of profitability to be sustained over time, with relatively low volatility. The rating agency cited measures initiated by the group to improve its underwriting standards across Spain, the U.S., Brazil and various Latin American countries, as well as Mapfre's global operations, namely its reinsurance and global risk units.

The rating agency affirmed its A-plus long-term issuer credit and financial strength ratings on Mapfre Re, Compania de Reaseguros and its A-minus long-term issuer credit rating on group holding company Mapfre SA. It also affirmed its A-minus issue rating on Mapfre's senior unsecured debt and its BBB issue rating on the group's subordinated debt.

The group posted "very strong results" in 2024 and the first quarter of 2025. It has coped with inflation of recent years by adjusting its pricing selectively and maintaining underwriting discipline, the rating agency said.

S&P also said that it expects the group's operating performance to be sound, with comparably low volatility compared with peers, with ROE for the group to be at least above 13% and a combined ratio below 94% in the coming years.