S&P Global revises Mapfre Group outlook to positive on stronger capital

Published 18/07/2025, 13:36
© Reuters.

Investing.com -- S&P Global Ratings has revised its outlook on Spain-based insurer Mapfre (BME:MAP) Group to positive from stable, citing improving capital and earnings generation.

The rating agency affirmed its ’A+’ long-term issuer credit and financial strength ratings on Mapfre Re, Compania de Reaseguros, S.A., and its ’A-’ long-term issuer credit rating on Mapfre S.A. S&P also maintained its ’A-’ issue rating on Mapfre’s senior unsecured debt and ’BBB’ issue rating on the group’s subordinated debt.

The outlook change reflects S&P’s expectation that Mapfre’s capital adequacy will consolidate structurally above the 99.95% confidence level according to its model. The agency also anticipates sustained profitability with relatively low volatility.

Mapfre has implemented various measures to enhance underwriting standards across all segments including Spain, the U.S., Brazil, and various Latin American countries, as well as its global operations. The group has leveraged its broad diversification across countries and business lines, posting strong results in 2024 and the first quarter of 2025.

In 2024, Mapfre reported net earnings of €1.6 billion, up from €1.3 billion in 2023 under International Financial Reporting Standard 17, with a return on equity of 16.2% including minority interests. The insurer’s combined ratio improved to 93%, down from 96.5% in 2023.

S&P projects Mapfre’s operating performance will remain sound with ROE above 13% and a combined ratio below 94% in the coming years.

The rating agency could upgrade Mapfre over the next 18-24 months if capital adequacy remains above the 99.95% confidence level and operating performance continues to compare well with ’AA-’ rated peers. Conversely, S&P could revert to a stable outlook if capital adequacy declines below the 99.95% confidence level, performance deteriorates, or if Mapfre no longer passes S&P’s sovereign default test.

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