AM Best

AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Covéa Coopérations


Pierre Tournier, CFA, FSA, CERA
Associate Director, Analytics
+31 20 308 5423

Dr. Mathilde Jakobsen
Director, Analytics
+31 20 308 5427

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


AMSTERDAM - DECEMBER 21, 2022 12:05 PM (EST)
AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Rating to “aa-” (Superior) from “a+” (Excellent) of Covéa Coopérations (France), the intermediate operating holding company of Société de Groupe d’Assurance Mutuelle Covéa (Covéa or the group), a leading mutual insurance group in France. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Covéa’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favourable business profile and appropriate enterprise risk management.

The rating upgrades reflect the enhanced product and geographic diversification following the acquisition of PartnerRe Ltd. (PartnerRe), which led AM Best to revise its business profile assessment to very favourable from favourable. PartnerRe provides both life and non-life reinsurance coverage on a worldwide basis and is among the ten largest reinsurers globally. PartnerRe’s profile as a global reinsurer acts as a natural diversifier to Covéa’s operations, which are concentrated in the French market, where the group benefits from a large, well-established customer base and strong distribution capabilities.

Covéa’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as a liquid and conservative investment portfolio and prudent reserving practices. Excess capital is held throughout the group; within the operating entities, the mutual members and Covéa Coopérations. AM Best expects Covéa’s risk-adjusted capitalisation to stay at the strongest level through the medium term, although BCAR scores are expected to decrease in 2022 from the combined effects of the purchase of PartnerRe and an erosion of unrealised gains in the investment portfolio.

The adequate operating performance assessment takes into account Covéa’s track record of stable earnings, underpinned by a weighted average return on equity of 5.1% for the five-year period ending in 2021, as calculated by AM Best. While the group saw losses related to the COVID-19 pandemic on business interruption policies in 2020, results on domestic operations are expected to revert to historical levels in the near term. The group’s prospective results are expected to be reinforced by the inclusion of PartnerRe, which generated an average annual pre-tax income of USD 434 million and an average return on equity of 5.9% for the five-year period ending in 2021, as calculated by AM Best.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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