2008-06-20 21:36:06 -

www.ambest.com - A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of "a-" of MAPFRE Insurance Company of Florida (MAPFRE Florida) (Miami, FL). The outlook for both ratings is stable.

The affirmations are based on MAPFRE Florida's solid capitalization, consistent investment income and the explicit support provided to the company as

a subsidiary of MAPFRE, the largest insurance organization in Spain. MAPFRE Florida's consistent investment income has helped to mitigate underwriting losses and maintain surplus levels. Furthermore, all reinsurance treaties for MAPFRE Florida are placed with MAPFRE RE, Compania de Reaseguros, S.A. (Spain). As MAPFRE Florida continues to implement stricter underwriting guidelines and improve the spread of risk, the support from MAPFRE provides security to policyholders. Moreover, in an effort to reduce its exposure to frequent and severe weather-related events, management has focused on improving its product offerings to include a comprehensive automobile policy.

Partially offsetting these positive rating factors are MAPFRE Florida's unfavorable underwriting performance and geographic concentration of risk. With all business generated in Florida, the company is susceptible to frequent and severe weather-related events, as well as regulatory changes and competitive market conditions. The losses suffered from several hurricanes have hindered capital accumulation via MAPFRE Florida's insurance operations. Recent results have improved due to the company's stricter underwriting philosophy and a decrease in the incidence of losses resulting from weather-related events as the recent storm seasons have been relatively quiet in Florida.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Company
Analysts
Sharon Summa, 908-439-2200, ext. 5510
sharon.summa@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
joseph.burtone@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com