AM Best Affirms Credit Ratings of AXA Global Re

AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of AXA Global Re (AGRe) (France). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AGRe’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, neutral business profile and very strong enterprise risk management (ERM). The ratings also reflect AGRe’s strategic importance to AXA S.A. (AXA), with AGRe benefiting from rating enhancement as a result.

AGRe’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to be maintained at least at the strong level through the medium term, after adjustments are made for the credit risk stemming from the company’s role as AXA’s main purchaser of external reinsurance. The assessment also considers the company’s high quality capital base and its liquid and conservative investment portfolio. Offsetting factors include AGRe’s high dependence on reinsurance, which exposes AGRe to significant counterparty risk, although this is moderated somewhat by the high quality of AGRe’s reinsurance panel and the expectation that AXA would support AGRe promptly in the event of a counterparty default.

AGRe’s adequate operating performance assessment is supported by a track record of stable and positive technical performance, with an average non-life combined ratio of 93.3% for the five-year period ending in 2020, as calculated by AM Best. Non-technical performance provides a modest but consistent contribution to the company’s results. In 2020, AGRe’s net investment return was stable at 1.4%.

AGRe’s neutral business profile assessment is supported by its key role as AXA’s captive reinsurance vehicle. While the company writes no third-party business, its role is considered integral to AXA’s risk management framework as a tool to optimise its capital resources through internal risk transfer and securing external reinsurance placements for all business segments.

AM Best assesses AGRe’s ERM as very strong, reflecting its deep integration within AXA’s ERM framework.

AGRe’s ratings benefit from its importance to AXA. This assessment is supported by the company’s strategic role and its deep level of integration within the group’s risk management framework. Given the company’s strategic importance, AM Best expects prompt and sufficient support from the parent should the need arise.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit

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 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. For more information, visit

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Morgane Hillebrandt

Financial Analyst

+31 20 308 5422

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

Pierre Tournier, CFA, FSA, CERA

Associate Director, Analytics

+31 20 308 5423

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

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