MAPFRE Sigorta reported higher net income of TRY1,910m ($41.1m) in 2025 (2024: TRY1,560m) driven by a higher investment income as interest rates remained high, while underwriting performance deteriorated slightly with a combined ratio of 107% (2024: 106%), notes Fitch Ratings.
However, in 1Q2026, the company’s technical performance deteriorated further as inflation increased to a higher-than-expected level following the conflict in the Middle East, affecting margins amid intense competition.
MAPFRE Sigorta responded by adjusting premiums, but given the lag between the price increase and improvement in loss ratios, Fitch still expects combined ratios to deteriorate in 2026. In 1Q2026, MAPFRE Sigorta's combined ratio was 111% (1Q2025: 105%).
Fitch expects the company’s financial performance to remain commensurate with the rating, supported by strong investment income offsetting negative underwriting results in 2026.
Rating affirmed
Fitch has affirmed MAPFRE Sigorta’s National Insurer Financial Strength (IFS) Rating at 'AA+(tur)'. The outlook is ‘Stable’.
The affirmation reflects MAPFRE Sigorta's importance to its parent, Madrid-headquartered MAPFRE. (Issuer Default Rating: A/Stable), and its strengthened capitalisation and resilient financial performance. These factors are partially offset by its weaker competitive position.
Aside from financial performance, other factors driving MAPFRE Sigorta’s rating include:
Ownership Benefits Rating: Fitch views MAPFRE Sigorta's ownership by MAPFRE group as supportive of the rating. Fitch assesses MAPFRE Sigorta as 'Important' to the parent under its insurance group rating methodology.
MAPFRE Sigorta benefits from MAPFRE's expertise in corporate governance, operational support and risk management, and its strategic direction mirrors that of the parent. Fitch believes that MAPFRE would provide support to MAPFRE Sigorta if needed and that the parent remains committed to the Turkish market, despite continued economic pressures in Turkiye, as demonstrated by a recent capital injection.
Weakened Competitive Position: The insurer's share of the Turkish non-life market was stable at 2.7% in 2025 (2024: 2.6%, 2023: 2.6%; 2022: 2.9%). This was largely due to the continued reduction of its share of motor third-party liability (MTPL) business, which has been heavily loss-making over the past 10 years. The lower market share weakens MAPFRE Sigorta's competitive positioning, but its substantially lower exposure to MTPL compared with peers supports our view of the company's lower-risk business profile. MAPFRE Sigorta has an established franchise.
Strengthened Capitalisation: MAPFRE Sigorta's regulatory solvency ratio strengthened to 146% at end-2025 (2024: 132%), as a result of an increase in shareholders' equity due to strong retained earnings and capital provided by the parent. MAPFRE provided TRY550m of capital in 2024-2025. MAPFRE Sigorta's Prism Global model score improved to 'Strong' at end-2025 from 'Adequate' at end-2024. Fitch expects MAPFRE Sigorta to keep its regulatory solvency ratio well above 100% and Prism score to be at least in the 'Adequate' range in 2026.
Domestic Risk Drives Asset Quality: The insurer's investment portfolio carries similar risks to its Turkish peers, with a high exposure to the Turkish banking sector through its bank deposits and some concentration in Turkish sovereign bonds. In 2025 and 2024, MAPFRE Sigorta maintained most of its portfolio allocated to Turkish lira-denominated bank deposits and government bonds to take advantage of higher interest rates on these instruments as interest rates remained high.