S&P Upgrades Mapfre to 'AA-' on Strengthened Capital and Improved Financials

S&P Global Ratings has raised its long-term issuer credit and financial strength ratings on Mapfre Re to AA- from A+, with a stable outlook. The upgrade reflects the Spanish insurer's strengthened capital base and an improved financial risk profile, which the agency revised to "very strong" from "strong."

Details of the Upgrade

The ratings action, announced on Wednesday, also included an upgrade for the group's non-operating holding company, Mapfre S.A., to A from A-. Correspondingly, S&P raised its ratings on Mapfre's senior unsecured instruments to A from A- and its subordinated debt to BBB+ from BBB.

The agency's decision was underpinned by strong operational performance and a robust capital buffer. S&P stated it expects Mapfre’s capital position to remain above its 99.95% confidence level throughout the 2026-2028 forecast period.

Underlying Financial Strength

The upgrade follows a period of solid financial results for the insurer. S&P noted several key performance indicators supporting its decision:

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• Net income attributable to shareholders reached €1.8 billion in 2025, a 13.2% increase from the prior year.
• The combined ratio improved to 90.5% from 93.2% under IFRS 17 accounting standards.
• Return on equity was a strong 17.5% in 2025.
• The group reported a Solvency II ratio of 206.8% as of the first quarter of 2026.

Acquisition and Outlook

The ratings agency also considered Mapfre's pending acquisition of Safety Insurance Group for $1.54 billion. S&P views the deal as having a limited impact on Mapfre's financial risk profile while strategically strengthening its competitive position in the U.S. personal and commercial auto insurance market.

The stable outlook indicates that S&P does not expect to change the ratings in the near term. However, the agency noted potential downgrade triggers, including a significant decline in capital adequacy or profitability, or a negative impact from the acquisition.