A.M. Best Affirms Ratings of Mapfre Panama, S.A.

  A.M. Best Affirms Ratings of Mapfre Panama, S.A.

Business Wire

OLDWICK, N.J. -- September 20, 2013

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
issuer credit rating of “a-” of Mapfre Panama, S.A. (ASSA) (Panama City,
Panama). The outlook for both ratings is stable.

The ratings reflect Mapfre Panama’s solid capitalization, consistent overall
earnings, generally favorable underwriting performance and local market
expertise. Mapfre Panama operates as a composite insurer of life and non-life
business and remains one of the three largest domestic insurance companies in

The company’s favorable underwriting results and investment income have
resulted in consistent overall earnings, which have led to organic surplus
growth in recent years. This has enabled Mapfre Panama to continue to enhance
its surplus position and maintain more than adequate risk-adjusted
capitalization for its current business profile. In addition, as a subsidiary
of MAPFRE S.A., Mapfre Panama benefits from group synergies, as well as access
to MAPFRE S.A.’s considerable global resources, including financial,
operational and intellectual expertise, complementing its already
well-established local market proficiencies.

Partially offsetting these favorable rating factors are the geographic
concentration of Mapfre Panama’s operations, the increasingly competitive
market environment in which the company operates and its reliance on
reinsurance as a catastrophe risk mitigation strategy.

While Mapfre Panama’s ratings are stable, factors that could contribute to
positive rating actions include continued strong underwriting performance and
overall profitability, as well as an upgrade in Panama’s country risk tier

Factors that may lead to negative rating actions include a significant loss of
the company’s market share, sustained decline in its underwriting
profitability, significant deterioration in risk-adjusted capitalization as
measured by Best’s Capital Adequacy Ratio (BCAR) and a downgrading of Panama’s
country risk tier rating.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at

A.M. Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.



A.M. Best Co.
Marien Villegas, 908-439-2200, ext. 5222
Financial Analyst
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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