AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Mutua de Riesgo Maritimo, Sociedad de Seguros a Prima Fija (Murimar) (Spain).

The Credit Ratings (ratings) reflect Murimar’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks to stable from negative reflect an improvement in Murimar’s risk management capabilities, mainly regarding its approach to capital management. AM Best expects the mutual to continue to operate in line with its established risk appetites and tolerances, while strengthening its risk management capabilities.

Murimar’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), increased to the strongest level at year-end 2023, from its very strong level in 2022, driven by solid retained earnings and reduced growth in underwriting risk. Murimar’s balance sheet strength also factors in its small capital base, which can give rise to volatility in risk-adjusted capitalisation.

AM Best considers Murimar’s operating performance to be adequate. In 2023, the mutual achieved record profits after-tax of EUR 1.4 million, and a combined ratio of 93.3%, below Murimar’s five-year average of 95.6% (2019-2023) (as calculated by AM Best). Prospectively, AM Best expects the mutual to maintain this level of profitability.

Murimar is a niche insurer focused on marine hull and cargo insurance for small- to medium-sized vessels in Spain. Murimar ranks third overall in Spain’s marine market and is a leader in the fishing vessel segment. In 2023, Murimar reported gross written premium (GWP) of EUR 36.2 million, of which EUR 33.7 million refer to non-life business. Distribution through Murimar’s strong agency network and effective client retention aided by its mutual status support its market positions. Although concentrated in its domestic market, Murimar has started to expand internationally over the last four years. In 2023, international business represented 22% of its GWP.

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