AM Best confirms the credit ratings of Solunion Seguros, Compañía Internacional de Seguros y Reaseguros SA

AMSTERDAM–(BUSINESS WIRE)–AM Best confirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Solunion Seguros, Compañía Internacional de Seguros y Reaseguros SA (Solunion) (Spain). The outlook for these Credit Ratings (ratings) is stable.

Solunion is the operating holding company of the Solunion group of companies, a 50-50 joint venture between MAPFRE Group and Allianz Trade. Allianz SE is the ultimate parent company of Allianz Trade.

The ratings reflect Solunion’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks. The ratings also take into account the strategic and operational support that Solunion receives from its co-shareholders, including significant reinsurance support in the form of quota share agreements and excess of loss protection.

Solunion’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which remained at the highest level at the end of 2021, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment is supported by Solunion’s prudent provisioning approach and conservative investment strategy. Solunion relies heavily on reinsurance, but the associated risk is considered limited, as reinsurance agreements are entered into only with the shareholders of the company.

Solunion has generated consistently positive net results over the past several years, posting a five-year weighted average combined ratio of 86.8% and a return on equity of 6.7% (2017-2021). In 2021, Solunion recorded a net profit before tax of 15.5 million euros driven by technical profits of 14.6 million euros, of which 12.6 million euros correspond to other technical income, which relate to service charges directly related to the company’s commercial line of credit. Solunion continued to report positive results at the end of June 2022, improving its operating metrics compared to the same period in 2021. An offsetting factor is uncertainty surrounding the sustainability of trade credit results in light of challenging economic conditions in the markets in which the company operates. However, AM Best notes the company’s ability to quickly take risk-mitigating action on underperforming activities, if any.

Solunion is a relatively small, albeit growing, credit insurer, recording gross written premiums of €218 million in 2021, with a product offering limited to trade credit and surety lines of business. The company’s market profile is concentrated in Spain, with some geographic diversification due to business written in Latin America. Positive business profile factors include the company’s ability to leverage Allianz Trade’s expertise and trade credit capabilities, while accessing MAPFRE’s extensive and well-established distribution channels in its target markets.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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