Best’s News & Research Service - July 01, 2016 12:28 PM (EDT)
A.M. Best Upgrades Issuer Credit Rating of Assurances Mutuelles de France
- July 01, 2016 12:28 PM (EDT)
London //BestWire// - A.M. Best has upgraded the issuer credit rating (ICR) to “a+” from “a” and affirmed the financial strength rating (FSR) of A (Excellent) of Assurances Mutuelles de France (AM) (France). The outlook for the ICR has been revised to stable from positive while the outlook for the FSR remains stable.
AM’s ratings benefit from the financial strength of, and the level of integration with, the mutual insurance group Covéa, a leader in the French non-life insurance market, of which AM is an affiliate member. Other members include La Garantie Mutuelle des Fonctionnaires, MAAF Assurances, MAAF Santé, MMA IARD Assurances Mutuelles, MMA Vie Assurances Mutuelles and DAS Assurances Mutuelles. A benefit of membership is the financial support that would be provided by Covéa to each of its members in the case of financial difficulty.
The upgrade to the ICR reflects Covéa’s improved operating performance over recent years, with net income reaching EUR 1.0 billion in 2015, together with the group’s enhanced operating governance structure, which has served to deepen the integration of the group’s entities and has helped to strengthen the strategic alignment of its members. Covéa’s financial strength is further supported by its excellent business profile, as a market leader in France’s non-life insurance segment, and its strong risk-adjusted capitalisation on a consolidated basis.
The ratings of AM also factor in its own excellent risk-adjusted capitalisation and the company’s track record of modest operating performance, albeit driven by its investment result. An offsetting rating factor is AM’s limited business profile as a following treaty reinsurer.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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