S&P assigns ‘A’ ratings with stable outlook to Fidelidade and Fidelidade RE

S&P Global Ratings, a credit rating agency, has initiated coverage of Fidelidade – Companhia de Seguros, S.A., and its reinsurance subsidiary, Fidelidade RE – Companhia de Resseguros, S.A., assigning both entities long-term Issuer Credit Ratings (ICR) and Financial Strength Ratings (FSR) of ‘A’ with a stable outlook.

S&P expects Fidelidade to maintain its position in the Portuguese insurance market and continue expanding internationally over the next two years.

The agency also noted the company’s capital levels and ongoing profitability, along with a generally cautious approach to risk.

In its analysis, S&P pointed to Fidelidade’s geographic and earnings diversification, including a 30% market share in Portugal and operations in regions such as Peru, Chile, Africa, and parts of Asia.

In 2024, the company reported a 12.6% increase in insurance revenues and net income of EUR 173.5 million. Its Solvency II ratio stood at 194% at year-end, with international business representing 30% of total premiums.

S&P’s rating reflects the agency’s view of Fidelidade’s financial profile, market position, and exposure across multiple regions.

This is Fidelidade’s second ‘A’ level credit rating. In September 2024, Fitch Ratings raised the company’s Insurer Financial Strength (IFS) rating to A+ from A and its Issuer Default Rating (IDR) to A from A-, both with a stable outlook. At the time, this represented the highest Fitch rating granted to a Portuguese company.

Fidelidade is part of Fosun International (00656.HK) and has a long-standing presence in the Portuguese market. Its international operations include countries in Europe, Africa, Latin America, and Asia. The company has recently increased its focus on international growth, with activity in markets such as Peru and Bolivia.

Rogério Campos Henriques, CEO of Fidelidade, said: “The recognition by two of the world’s leading rating agencies reinforces confidence in the strategy we have been pursuing. It is the result of rigorous financial discipline, prudent management, and a clear focus on creating value for our customers, shareholders, and partners.”

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