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A.M. Best Affirms Credit Ratings of Ceská pojištovna a.s.


CONTACTS:

Ghislain Le Cam, CFA, FRM
Associate Director, Analytics
+44 20 7397 0268
ghislain.lecam@ambest.com

Mahesh Mistry
Director, Analytics
+44 20 7397 0325
mahesh.mistry@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - OCTOBER 28, 2016 12:42 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Ceská pojištovna a.s. (Ceska) (Czech Republic). The outlook of these Credit Ratings (ratings) remains stable.

Ceska is a fully owned subsidiary of Assicurazioni Generali S.p.A. (Generali), writing life and non-life insurance business in the Czech Republic. The ratings reflect Ceska’s very strong business profile, excellent record of technical profitability and solid risk-adjusted capitalisation, and are derived from Ceska’s strategic importance to the Generali group.

Ceska is the largest insurance company in Czech Republic, having an estimated 23% market share, and benefits from strong market positions in motor, commercial lines and life business. Ceska’s leading position is underpinned by its excellent brand recognition and its solid agent network, which is its primary distribution method. The company has a well-diversified insurance portfolio, with gross premium written split between life (35%), motor (28%) and other non-life lines of business (37%) in 2015.

Ceska has maintained an excellent track record of technical profitability demonstrated by a five-year average (2011-2015) combined ratio of 86.4%. The company produced a return-on-equity of 16.8% in 2015, and is a consistent source of earnings for Generali.

Ceska’s solid level of risk-adjusted capitalisation is supported by a low level of underwriting leverage and a relatively conservative investment portfolio that is focused on investment-grade fixed income investments.

Ceska’s ratings also factor in the company’s strong integration into Generali in terms of capital management, enterprise risk management, and reinsurance. The company is further considered as a key element of Generali’s strategy in Central and Eastern Europe, one of the group’s core markets.

This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.


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