Best's News

Best’s News & Research Service - October 26, 2016 01:27 PM (EDT)

A.M. Best Affirms Credit Ratings of Axéria Prévoyance and Axeria Re Limited

  • October 26, 2016 01:27 PM (EDT)
    print icon

London //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Axéria Prévoyance (AxP) (France) and Axeria Re Limited (Axeria Re) (Malta). The outlook of these Credit Ratings (ratings) remains stable.

The ratings of AxP reflect its strong risk-adjusted capitalisation, improved technical performance and good business profile, which is reinforced by the strong market position of April S.A. (April), its ultimate parent and holding company of the April group, a market leader of wholesale insurance brokerage in France. Axeria Re’s ratings reflect the company’s strategic importance to AxP and the wider April group, as an internal reinsurer, providing reinsurance capacity and support to the group’s principal risk carriers.

AxP’s risk-adjusted capitalisation strengthened in 2015 following the implementation of a new reinsurance programme, which served to reduce the company’s net underwriting risks. Improved technical and operating performance over 2014 and 2015, after a number of years of volatility, has supported internal capital generation, assisting the company in growing its capital base.

AxP’s business profile leverages April’s strong market position, brand and extensive distribution network, with the company underwriting the group’s core business lines of corporate health and protection, individual health and credit insurance. Recent regulatory changes in France concerning health and loan insurance (the accord national interprofessionnel, or “ANI” legislation, and the Hamon law, respectively) have increased competitive pressures in the French market, and are proving to be a test for the April group’s distribution model. Despite an increasingly challenging operating environment, A.M. Best expects AxP to maintain its technical margin through its strategy of market segmentation and disciplined risk selection.

Axeria Re continues to play an important strategic role within April as the group’s reinsurer, and in particular as a pivotal reinsurance partner for AxP. Additionally, since 2015, Axeria Re has been providing stop loss retrocession protection to AxP’s external reinsurers. Axeria Re benefited from a significant capital injection of EUR 16 million in 2015, which has served to materially strengthen its risk-adjusted capitalisation.

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.

Reinsurance Reinsurers Europe Financial Strength France Press Release Insurance Malta Issuer Credit Rating Best's Credit Rating Action

Latest News

More from Best’s News