Rating Upgrade Overview
S&P Global Ratings upgraded Mapfre Re, Compania de Reaseguos, S.A.'s long‑term issuer credit and financial strength rating to AA‑ from A+, and raised the rating of its non‑operating holding company Mapfre S.A. to A from A‑. The agency also lifted the long‑term issue rating on senior unsecured instruments to A from A‑ and on subordinated debt to BBB+ from BBB, maintaining a stable outlook.
Financial Performance Highlights
The upgrade is underpinned by a stronger capital position and an improved financial risk profile, which S&P revised to very strong from strong. Mapfre reported net income attributable to shareholders of €1.8 billion for 2025, representing a 13.2% year‑on‑year increase. The combined ratio under IFRS 17 improved to 90.5% from 93.2%, and return on equity reached 17.5% in 2025. First‑quarter 2026 results indicated further improvement, though specific figures were not disclosed.
Capital Adequacy and Investment Profile
S&P expects Mapfre’s capital position to remain above the 99.95% confidence level throughout 2026‑2028. As of Q1 2026, the group’s Solvency II ratio stood at 206.8%. In 2025, bonds, loans and cash accounted for 79% of general‑account investments, with government bonds and cash comprising 55% of fixed‑income holdings. Exposure to Spanish assets represents roughly 38% of general‑account investments.
Acquisition Offer
On 23 July 2026, Mapfre made a binding offer to acquire 100% of Safety Insurance Group, a Massachusetts‑based insurer, at $105 per share, valuing the transaction at $1.54 billion. The deal is subject to regulatory clearance and shareholder approval. S&P assesses that the acquisition will have limited impact on Mapfre’s financial risk profile while strengthening its competitive position in personal and commercial auto and homeowners business in Massachusetts.
Rating Outlook and Potential Downgrades
S&P outlined several triggers that could lead to a rating downgrade: a prolonged decline of projected capital adequacy below the 99.95% confidence level, a substantial fall in profitability, an unexpected negative impact from the Safety Insurance Group acquisition, or failure to meet S&P’s sovereign stress test for Spain.