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Best’s News & Research Service - July 10, 2024 09:38 AM (EDT)

AM Best Affirms Credit Ratings of CCR RE

  • July 10, 2024 09:38 AM (EDT)
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//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of CCR RE (France). The outlook of these Credit Ratings (ratings) is stable.

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

CCR RE’s balance sheet strength assessment reflects its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by internal capital generation. The company’s majority shareholder, Société Mutuelle d'Assurance du Bâtiment et des Travaux Publics (SMABTP),

 together with minority shareholder Mutuelle d’Assurance du Corps de Santé Français (MACSF), contributed an additional EUR 200 million to CCR RE’s capital base in 2023. This assessment also factors in the company’s low dependence on reinsurance, conservative reserving practices, and its liquid and good quality investment portfolio. CCR RE has demonstrated its financial flexibility most recently with the issuance of EUR 300 million of subordinated debt in 2020.

CCR RE has been profitable since its creation as a stand-alone company in 2016, with earnings stemming from both underwriting and investment activities. Since inception, the company has experienced strong growth, with net written premium expanding at an average annual rate of 21% for the five-year period ending in 2023 (20% in 2023).

Net results have trended higher during the past few years, with a return on capital and surplus average of 7% for the five-year period ending in 2023 (2023: 8%).

CCR RE’s neutral business profile is supported by its established presence in the international reinsurance market, with the company having a well-diversified underwriting portfolio and benefiting from a long-established brand.

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.

Reinsurance Reinsurers France Press Release A.M. Best Rating Services, Inc. Best's Credit Rating Action

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