AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a+' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable.
MAPFRE Panama is a member of the
The ratings reflect MAPFRE Panama's geographic and strategic importance to the MAPFRE group, given its
MAPFRE Panama led
MAPFRE Panama's strongest level of risk-adjusted capitalization, as measured on a consolidated basis by Best's Capital Adequacy Ratio (BCAR), solid capital base and good reserve position provide a sound financial flexibility. AM Best expects the company to sustain its capitalization level, in addition to ERM practices and procedures implemented from the MAPFRE group. This should continue to influence MAPFRE Panama's future performance positively.
MAPFRE Panama's combined ratio for 2020 improved to 92.4% due to its lower loss ratio, as underwriting, mainly in the health and auto business lines, continue to be adjusted to reflect its risk experience, in addition to pandemic inactivity positively impacting its P/C lines of business. Given the volatility in 2021 in auto and health, AM Best expects MAPFRE Panama to sustain technical results through strict claims and expense containment strategies. Administrative and acquisition expenses have remained well-contained.
The strong competitive environment in
If there are negative rating actions on the MAPFRE group, as a result of a sustained decline in operating performance below AM Best's expectation for the strong assessment level, or a sustained deterioration in
A change in AM Best's perception regarding the actual or perceived level of MAPFRE Panama's strategic importance to the MAPFRE group also could impact the company's ratings.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
Available Capital & Holding Company Analysis (
Catastrophe Analysis in AM Best Ratings (Version
Evaluating Country Risk (Version
Scoring and Assessing Innovation (Version
Understanding Global BCAR (Version
The following applied criteria supplemented the analysis of the ultimate rating unit:
AM Best Ratings on a National Scale (Version
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
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