AM Best Affirms Credit Ratings of Coface SA’s Main Operating Subsidiaries

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Compagnie française d’assurance pour le commerce extérieur (la Compagnie) (France), Coface North America Insurance Company (CNAIC) (USA) and Coface Re SA (Coface Re) (Switzerland), which are subsidiaries of Coface SA (Coface), the non-operating holding company of the Coface group. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Coface’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. The ratings of la Compagnie and CNAIC consider their strategic importance to the Coface group as key operating entities. Coface Re is strategically important to the group as its sole intragroup reinsurer.

Coface’s balance sheet strength assessment is underpinned by consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the group’s risk-adjusted capitalisation to remain at the strongest level prospectively, supported by good internal capital generation. Offsetting factors include significant operating leverage, driven by the group’s factoring business, and a high dependence on reinsurance, although the risks associated with this dependence are moderated by the group’s well-diversified, highly rated reinsurance panel.

The group’s adequate operating performance assessment is supported by an average non-life combined ratio of 92.9% for the five-year period ending in 2019, as calculated by AM Best. Despite the deteriorating economic conditions, the group reported a good technical result for 2020 with a net combined ratio of 79.8%. Prospective performance is subject to volatility, and AM Best believes that there is a potential for heightened claims activity in 2021 due to the prolonged global economic disruption. AM Best expects the group’s operating performance to remain at an adequate level over the medium term, supported by management’s ability to take prompt risk-mitigating actions on non-performing business when required.

Coface’s favourable business profile assessment is underpinned by its leading position in the global credit insurance market, which is characterised by high barriers to entry. The group has made consistent investment in its pricing tools and data management capabilities, allowing it maintain its competitive advantage. Although the group is largely a mono-line insurer, its exposures are well-diversified by geography and industry. Fee-based services and factoring businesses in Poland and Germany also provide some diversification.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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.


Pierre Tournier
Associate Director
+31 20 308 5423

Dr. Mathilde Jakobsen
+31 20 308 5427

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

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644

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