The Spanish insurance and reinsurance sector is set to benefit from an improving economic outlook for the country, as GDP growth and an improved sovereign outlook flow through to re/insurers, according to Standard & Poor’s.
Rating agency S&P has upgraded the Spanish sovereign credit ratings to ‘A-‘ from ‘BBB+’ on economic growth and budgetary consolidation and has assigned the country a positive rating outlook.
Because of this, S&P has changed its assessment of the insurance industry and country risk for the Spanish property & casualty sector to low risk from intermediate risk, which is an improvement. S&P maintains its assessment of intermediate risk for the Spanish life insurance sector.
As a result, S&P has raised its ratings on one Spanish insurer, revised the outlook to positive from stable for two insurers that are part of the same group, and affirmed the ratings on two other insurance companies.
S&P explains that, “Insurers will benefit from Spain’s economic growth prospects as well as improved credit quality.”
Compania Espanola de Seguros de Credito a la Exportacion S.A. (CESCE) has had its rating upgraded to ‘A-‘ from ‘BBB+’ with a stable outlook.
The rating outlook has been revised to positive from stable on the core entities of Mapfre Group, including the firms reinsurance entities.
FIATC Mutua de Seguros y Reaseguros a Prima Fija y Sociedades Filiales (FIATC) has had its BBB+ rating affirmed with a stable outlook.
Nacional de Reaseguros S.A. has had its A- rating affirmed with a positive outlook.
