A.M. Best Places Ratings of Mapfre, MAPFRE RE and Corporacion MAPFRE Under Review With Negative Implications

A.M. Best Co. has placed under review with negative implications
the financial strength ratings (FSR) of A+ (Superior) and the issuer
credit ratings (ICR) of "aa" of Mapfre Mutualidad de Seguros y
Reaseguros (Mapfre) and MAPFRE RE, Compania de Reaseguros, S.A.; the
ICR of "aa-" of Corporacion MAPFRE, S.A. (Corporacion), Mapfre's
publicly listed non-operating holding company; and the debt rating of
"aa-" on the EUR 275 million 6.02% senior debt due 2011 issued by
Corporacion. All companies are domiciled in Spain.

The rating action follows Mapfre's announcement that it will form
a joint venture for the existing motor portfolio of Societa Cattolica
di Assicurazione (Cattolica) (Italy).

In A.M. Best's opinion, this transaction could put pressure on
Mapfre's consolidated risk-adjusted capitalisation as the joint
venture will be financed with cash. A.M. Best is also concerned about
the future underwriting profitability of this entity as the Italian
motor market is at the peak of the cycle.

A.M. Best will discuss these issues with Mapfre's management and
aims to resolve the under review status as soon as possible.

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

A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at www.ambest.com.