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AM Best calls MAPFRE Safety Insurance acquisition strategically compelling
AM Best said MAPFRE’s rated operating subsidiaries will keep an A (Excellent) Financial Strength Rating and a+ (Excellent) Long-Term Issuer Credit Rating with stable outlooks.
AM Best described Spain-based insurer MAPFRE S.A.’s planned acquisition of Safety Insurance Group, Inc. as strategically compelling, citing the companies’ similar regional footprints and product offerings.
In a definitive agreement, MAPFRE’s US unit, MAPFRE U.S.A. Corporation, will buy Safety, a property and casualty insurer with a leading market position in Massachusetts and operations across several northeastern states.
AM Best said the credit ratings of MAPFRE’s rated operating subsidiaries remain unchanged after the announcement, with Financial Strength Ratings of A (Excellent) and Long-Term Issuer Credit Ratings of “a+” (Excellent), both with stable outlooks.
The agency added that the ratings reflect its view of MAPFRE’s very strong balance sheet, strong operating performance, favorable business profile, and appropriate enterprise risk management, while pointing to the group’s international scale and diversification.