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A.M. Best Assigns Ratings to Ceská pojištovna a.s.


CONTACTS:

Michael Dunckley
Financial Analyst
+(44) 20 7397 0321
michael.dunckley@ambest.com

Ghislain Le Cam, CFA
Associate Director, Analytics
+(44) 20 7397 0268
ghislain.lecam@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - OCTOBER 23, 2015 12:34 PM (EDT)
A.M. Best has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to Ceská pojištovna a.s. (CP) (Czech Republic). The outlook assigned to both ratings is stable.

CP 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 CP’s very strong business profile, excellent record of technical profitability and solid risk-adjusted capitalisation, and are derived from CP’s strategic importance as a member of the Generali group rating.

CP is the largest insurance company in Czech Republic, having an estimated 24% market share, and benefits from strong market positions in motor, commercial lines and life business. CP’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 38% life, 28% motor and 34% other non-life lines of business in 2014.

CP has maintained an excellent track record of technical profitability demonstrated by a five-year average combined ratio of 90.8% (2010-2014). The company produced a return-on-equity of 14.1% in 2014, and is a consistent source of earnings for Generali.

CP’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. Although CP pays 90% of after-tax profits in dividends, its prospective risk-adjusted capitalisation is expected to remain strong given solid profitability and low growth in capital requirements considering the company’s already high market share.

CP’s ratings also factor in its strong integration into Generali in terms of capital, management structure, 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.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

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 visit A.M. Best’s Ratings & Criteria Center.

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