A.M. Best Affirms Ratings of Mapfre Tepeyac S.A.

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Mapfre Tepeyac S.A. (Mapfre Tepeyac) (Mexico). The outlook for both ratings is stable.

The ratings reflect Mapfre Tepeyac's solid balance sheet, growing market presence and adequate capitalization. The ratings also recognize Mapfre Tepeyac's affiliation with its immediate parent, MAPFRE America S.A., including the synergies and operating efficiencies the company enjoys as a group member of MAPFRE S.A., the leading insurer in Spain.

Mapfre Tepeyac writes life and non-life coverages exclusively in Mexico. Business segments include individual and group life, individual and group accident and health, general and professional liability, marine (cargo only), fire and earthquake and automobile. The company's risk-adjusted capitalization remains adequate for its current business profile, and Mapfre Tepeyac continues to leverage its brand recognition to enhance its market presence and attain scale.

Partially offsetting these favorable rating factors are Mapfre Tepeyac's underwriting losses in recent years, the increasingly competitive Mexican insurance market and the company's reliance on reinsurance to protect its earnings and surplus.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; "Understanding Universal BCAR"; "Rating Members of Insurance Groups"; "Ratings and the treatment of Debt"; "Natural Catastrophe Stress Test Methodology"; and "Assessing Country Risk." Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

Contacts:

A.M. Best Company, Inc.
Ricardo Longchallon
Senior Financial Analyst
[phone], ext. 5676
[e-mail]
or
Rachelle Morrow
Senior Manager, Public Relations
[phone], ext. 5378
[e-mail]
or
Peter Dickey
Assistant Vice President
[phone], ext. 5053
[e-mail]
or
Jim Peavy
Assistant Vice President, Public Relations
[phone], ext. 5644
[e-mail]