AM Best Affirms Credit Ratings of Santa Lucía S.A. Compañía de Seguros y Reaseguros

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Santa Lucía S.A. Compañía de Seguros y Reaseguros (Santalucía) (Spain). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Santalucía’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Santalucía’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by good internal capital generation. The company’s balance sheet strength benefits from the protection against losses from most natural perils provided by the Spanish government’s national scheme (Consorcio de Compensacion de Seguros). Offsetting factors include the company’s riskier investment portfolio allocation although well diversified by asset-class, short-term financial liabilities and intangible assets (recognised in its balance sheet after acquiring Aviva’s Spanish life insurance business). AM Best expects the prospective capital position to benefit from stable earnings generation and a prudent dividend policy set in 2019, which includes a pay-out ratio of approximately 30% of post-tax earnings.

Santalucía’s operating performance benefits from a track record of solid technical earnings primarily stemming from the funeral expenses (decesos) line of business, in which it has a leading market position. The acquisition of Aviva’s Spanish life insurance business and investments in joint ventures that complement the decesos line of business have overall contributed positively to profitability. In 2019, Santalucía’s profit before tax stood at EUR 181.6 million, equivalent to a return on equity of 7.6%. Despite COVID-19-related claims in the decesos line, the company has continued to be profitable, reporting an overall net profit before tax of EUR 96 million in the first half of 2020.

Santalucía has an established profile as a provider of personal lines insurance in Spain and benefits from a long-standing brand and good reputation in the sector. It is now the eighth-largest insurance group in Spain by gross written premium, with its profile enhanced in recent years by a more diverse business mix and the broader reach of its network (mainly within Spain).

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Giannina Carbajal Ortiz

Financial Analyst, MBA

+31 30 308 5428

Angela Yeo
Senior Director, Analytics
+31 20 308 5421

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644

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