AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of MAPFRE Panamá S.A. (MAPFRE Panamá) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable.

MAPFRE Panamá is a member of MAPFRE S.A. (MAPFRE), which on a consolidated basis has a balance sheet strength that AM Best assesses as very strong, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM).

The ratings reflect MAPFRE Panamá’s geographic and strategic importance to the MAPFRE group, given its Central America presence, as well as the integration of the MAPFRE group’s practices, procedures, reinsurance, draft facilities, underwriting selection and ERM framework into MAPFRE Panamá, and the synergies and operating efficiencies derived from being a group member. As of August 2025, MAPFRE Panamá ranked as Panama’s third-largest insurer, based on gross written premium. Partially offsetting these positive rating factors are the competitive dynamics that persist in Panama’s property/casualty segment.

As of August 2025, the company’s business portfolio was comprised of 19% life premium and 81% non-life; this business is diversified across accidents and health (33%), surety (16%), auto (7%), transport (4%) and liabilities (1%), with the remainder being miscellaneous risks (19%). MAPFRE Panamá ranks among the top companies in Panama’s health and surety insurance segments.

The ratings also reflect MAPFRE Panamá’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). which aligns with the strongest level of risk-adjusted capitalization for the group on a consolidated basis. The company has a solid capital base and good reserve position that provides sound financial flexibility. AM Best expects the company to sustain its risk-adjusted capitalization level, in addition to adhering to its ERM practices and procedures implemented by the MAPFRE group.

MAPFRE Panamá’s combined ratio returned to premium sufficiency levels in 2024, as the company resumed positive technical results through its ongoing strict claims and expense containment strategies, in conjunction with improvements in its life business. As of August of 2025, positive bottom-line results stood at USD 7.8 million.

The strong competitive environment in Panama’s insurance market, especially in segments in which MAPFRE Panamá has leading positions, continue to generate challenging conditions and increased risk appetites across the industry, presenting operating performance challenges in specific segments such as auto, individual life and health.

If negative rating pressure develops as a result of a deterioration in the operating performance metrics of the MAPFRE group, below those commensurate with the strong assessment or following a notable deterioration in balance sheet strength to a level no longer supportive of the very strong balance sheet assessment, the ratings of MAPFRE Panamá would mirror those actions. Positive rating forces may arise should the group successfully expand its profile whilst maintaining strong operating performance and very strong balance sheet fundamentals, in which case, the ratings of MAPFRE Panamá would move in tandem. A change in AM Best’s perception regarding the actual or perceived level of MAPFRE Panamá’s strategic importance to the MAPFRE group also could impact the company’s ratings.

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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