Covéa secures ‘A’ rating post-restructuring and shift into reinsurance
AM Best has assigned a Financial Strength Rating of A (Excellent) to Covéa Coopérations (France), the holding company of société de groupe d’assurance mutuelle (SGAM) Covéa, a mutual insurance group in France. The rating’s outlook is stable.
The rating agency noted that, following a restructuring in recent years, the majority of Covéa’s operating insurance companies is now held under Covéa Coopérations, streamlining the SGAM’s structure, and increasing the integration of the group’s operations and the strategic alignment of its members.
In October 2015, Covéa Coopérations received regulatory approval to underwrite reinsurance business and subsequently commenced operations during 2016. Since then, the company has been writing a portfolio of life and health reinsurance business, and accepting a retrocession quota share from Assurances Mutuelles de France (AM), a founding member of Covéa.
Starting January 2017, AM’s existing reinsurance portfolio is expected to be renewed by Covéa Coopérations, making Covéa Coopérations the Covéa group’s primary reinsurance arm.
AM Best said the rating reflects the strategic importance of Covéa Coopérations within the Covéa group and benefit from Covéa’s excellent business profile as a market leader in France’s non-life insurance market. In addition, the ratings are supported by Covéa’s strong consolidated risk-adjusted capitalisation, and its solid operating and technical performance, with Covéa reporting a combined ratio of 98.5 percent for 2015.
