Today: December 18, 2017, 2:28 am

A.M. Best Affirms Credit Ratings of Caisse Centrale de Réassurance and CCR RE 2017-06-16 17:57:01

A.M. Best Affirms Credit Ratings of Caisse Centrale de Réassurance and CCR RE

A.M. Best
Alex Rafferty, ACA, +44 20 7397 0285
Financial Analyst
Ghislain Le Cam, CFA, FRM, +44 20 7397 0268
Director, Analytics
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations

A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa” of Caisse Centrale de Réassurance (CCR) (France). Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” of CCR RE (France). The outlook of these Credit Ratings (ratings) is stable.

The ratings of CCR reflect its strong risk-adjusted capitalisation, good operating performance, and excellent business profile in France. The ratings also factor in the explicit unlimited guarantee provided by the Republic of France to CCR’s State-backed business.

CCR’s risk-adjusted capitalisation remains strong, supported by a conservative earnings retention policy and the backing of the French State. CCR offers reinsurance coverage for natural catastrophe, terrorism and other exceptional risks with the explicit support of the French State, its sole shareholder, in the form of unlimited stop-loss reinsurance.

Losses associated with floods in France during May/June 2016 were the principal driver of CCR’s technical and operating performance for 2016, with the combined ratio increasing to 103% in the year from 68% in 2015 (as calculated by A.M. Best). However, following a release of equalisation provisions, the group recorded a consolidated net profit of EUR 141 million in 2016, compared with EUR 218 million in 2015, with profitable operating performance across each of the group’s segments in 2016. Several years of benign catastrophe experience in France have allowed CCR to build a track record of good technical and operating performance, although prospective results remain subject to volatility due to exposure to potentially large market losses.

CCR maintains a unique position as the main reinsurer of natural catastrophe risks underwritten in France with an estimated market share of around 90%. A.M. Best expects the company to retain its strategic importance to the French State as a provider of reinsurance for risks typically considered uninsurable.

In 2016, CCR created CCR RE, in order to segregate CCR’s open-market reinsurance portfolio from its French State-backed reinsurance operations. The establishment of the subsidiary was followed by a portfolio transfer on 31 December 2016 of CCR’s open-market reinsurance activities. CCR RE was established to underwrite the CCR group’s open market business from January 2017, covering life, non-life and a number of specialty lines internationally.

The ratings of CCR RE factor in its strategic importance to the CCR group, both in terms of contributing material volumes of premium income to CCR on a consolidated basis, and as an outlet to keep abreast of market developments and to maintain an active presence in segments in which the need for State support may arise. CCR RE is strongly integrated into CCR, sharing resources and leveraging the organisation’s existing governance and risk management frameworks.

The ratings of CCR RE also consider the company’s solid standalone risk-adjusted capitalisation and good business profile, which benefits from the long-established CCR brand. A.M. Best expects CCR RE to generate robust earnings over the medium term, albeit driven by investment returns, as CCR’s open-market portfolio, now underwritten by CCR RE, has produced underwriting losses over the last five years with a five-year average (2012-2016) non-life combined ratio of 110% (as calculated by A.M. Best). Weak non-life performance has, however, been partially offset by continued profitable returns on the life portfolio. While A.M. Best notes that CCR RE’s immediate focus remains on rationalising its underwriting portfolio and diversifying its natural catastrophe exposures, this may prove challenging considering the prevailing weak market conditions, and A.M. Best will continue to monitor the company’s progression against its business plan.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper [..].

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Press Information

Published by
Hossam Abdel-Kader
+43 1 9582319

# 1034 Words
Related Articles
More From The Author
Songa Offshore SE : Mandatory Notification of [..]
Reference is made to the press releases as of 25 November 2016 and 14 June 2017 regarding incentive programs established [..]
A.M. Best Places Credit Ratings of Bahrain [..]
A.M. Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer [..]
A.M. Best Downgrades Credit Ratings of JSC [..]
A.M. Best has downgraded the Financial Strength Rating to C+ (Marginal) from C++ (Marginal) and the Long-Term Issuer Credit Rating [..]
Uniserve makes strategic investment in Canadian Managed [..]
Purchases majority interest in Glenbriar Technologies VANCOUVER, B.C., June 16, 2017 (GLOBE NEWSWIRE) -- Uniserve Communications Corporation [..]
FDA posts briefing materials prior to Advisory [..]
Bagsværd, Denmark, 16 June 2017 - Novo Nordisk today announced that the US Food and Drug Administration (FDA) has published [..]
More From Business
This Week, Woo your Friends with Beautiful [..]
The company can provide flowers and cakes to any place around the Adipur or Vadodara town in just 3 to [..]
Eram Scientific Wins India’s First-ever Swachh Bharat [..]
Dubai, United Arab Emirates, December 15, 2017: Eram Group, a diversified business conglomerate headquartered in Dubai, announced [..]
Hire A Bookaskip Mini Skip For That [..]
As we all know, December is ‘party month’ and, although we all love a good party, we are not so [..]
Cirtek Holdings Philippines Corp Holds Its First-Ever [..]
SAN FRANCISCO, CA, Dec 8, 2017 - (ACN Newswire) - All-Asia institutional equities broker Decker & Co. hosted Cirtek Holdings [..]
Business of Intellectual Property (BIP Asia) Forum [..]
Industry Experts Gather in Hong Kong to Promote IP and Innovation HONG KONG, Dec 7, 2017 - (ACN Newswire) - [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.