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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of MAPFRE U.S.A. Corp.’s Main Insurance Subsidiaries

May 23, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--May 23, 2019--

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of the main property/casualty members of MAPFRE U.S.A. Group (MAPFRE U.S.A.). The outlook of these Credit Ratings (ratings) is stable.

The aforementioned companies are owned by MAPFRE U.S.A. Corp. (MAPFRE USA Corp), whose ultimate parent is Spain-based MAPFRE S.A. (MAPFRE). The lead company in MAPFRE U.S.A. is The Commerce Insurance Company (Webster, MA) and includes inter-company pooling members, Citation Insurance Company (Webster, MA), Commerce West Insurance Company (Sam Ramon, CA), American Commerce Insurance Company (Columbus, OH), MAPFRE Insurance Company of Florida (Miami, FL) and MAPFRE Insurance Company (Florham Park, NJ).

The ratings reflect MAPFRE U.S.A.’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect the implicit and explicit support provided by its parent company, MAPFRE.

MAPFRE U.S.A.’s balance sheet strength reflects the group’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is partially offset by adverse loss reserve development trends and liquidity and underwriting leverage measures, which compare unfavorably with the averages for the private passenger standard automobile industry composite. Surplus levels have declined over the most-recent five-year period due to sizeable dividend payments to the parent company.

Operating results over the most-recent five-year period have been volatile. The group’s five-year average return on revenue and return on equity measures lag the averages for the industry composite by a wide margin. Operating results have been impacted negatively by underwriting losses, driven by adverse prior-year loss reserve development, weather-related losses and an above-average expense ratio mainly due to high commission expenses.

The business profile is considered neutral due to the group’s local market expertise, MAPFRE U.S.A./Commerce brand-name recognition in several states, broad distribution networks and marketing activities throughout the various subsidiaries. This is partially offset by MAPFRE U.S.A.’s concentration of business in Massachusetts and to the automobile sector. ERM is considered appropriate for the group’s size and complexity of its underwriting, investment and other risks, based on its ERM framework and controls.

The ratings also benefit from the group’s role and strategic importance as an attractive market to its parent company, MAPFRE. MAPFRE U.S.A. is integrated fully into the operations and management of the group globally and carries the MAPFRE name commercially. MAPFRE also provides support to MAPFRE U.S.A. through reinsurance, staffing of senior leadership positions and ERM guidance.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190523005794/en/

CONTACT: Jacqalene Lentz, CPA


+1 908 439 2200, ext. 5762

jacqalene.lentz@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comGreg Williams

Senior Director

+1 908 439 2200, ext. 5815

greg.williams@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 05/23/2019 04:11 PM/DISC: 05/23/2019 04:11 PM


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