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ULUSLARARASI RATING OLDWICK, N.J., JUNE 28, 2001 A.M. Best Co. has upgraded the financial strength rating to A+g (Superior) from A (Excellent) for Mapfre Asistencia Cia. Internacional de Seguros y Reaseguros S.A. (Mapfre Asistencia), Madrid, Spain. The rating action reflects Mapfre Asistencia's favorable operating trends, sustained profitability, excellent capitalization, solid balance sheet strength and liquidity. Also, the rating considers management's effective operating and distribution strategies as well as the company's strong reinsurance protection. Mapfre Asistencia is the Mapfre Group's flagship assistance insurance operation-(specializing in assistance insurance coverages both in Spain and abroad)-it has a pre-eminent position in the Spanish market and strong global name recognition. Mapfre Asistencia fulfills A.M. Best's group rating criteria as a fully owned subsidiary and a core-operating unit within the Mapfre Group, while recognizing its distinct individual elements. The parent, Corporacion Mapfre, has explicitly documented the alignment of Mapfre Asistencia in order to continue in the development of SIAM -MAPFRE ASISTENCIA INTERNATIONAL NETWORK (SIAM in Spanish). SIAM is comprised of more than 25 assistance centers and representative offices with more than 40,000 service providers and correspondents. Benefiting from its parent company's trademark, Mapfre Asistencia is one of the largest direct assistance insurers in the world and is the leading provider in Spain with consolidated GPW amounting to ESP 20.5 billion or approximately USD 116 million. Focusing most of its business growth in Latin America, which lacked this insurance service, Mapfre Asistencia is the leading company in Latin America and has the largest operational network in the continent. Mapfre Asistencia is now seeking new opportunities in Eastern Europe - subscribing business in Russia and Romania - six countries in the Middle East and North Africa. Additionally, positive results have been achieved in Spain and major contributions have been received from the U.K. and Germany ventures. Mapfre Asistencia has recorded positive underwriting and operating results over the last five years. Capitalization measures are strong, particularly given its short-tail book of business. Capital and surplus has increased consistently, resulting from the retention of net income and capital contributions. With the continued improvement in sales and customer service, Mapfre Asistencia, and its integrated workforce will move forward restructuring its organizational culture and environment. This mission is considered a key element for the future success of the business. A.M. Best expects the company to maintain strong capitalization levels, since the business plan projects reasonable new business volume and capital levels able to support its insurance operations over the short- to medium-term. Offsetting the aforementioned strengths are the highly competitive European market and exposure to the volatile emerging markets business where the company operates. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. |
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