AM Best Affirms Credit Ratings of N.V. Univé Her

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of N.V. Univé Her (Univé Her) (Netherlands), a wholly owned subsidiary of Coöperatie Univé U.A. (Univé Group), a mutual insurance group domiciled in the Netherlands. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Univé Her’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. The ratings also consider Univé Her’s strategic importance to and integration within the Univé Group (the group) as its reinsurance vehicle, with the company benefiting from rating enhancement as a result.

Univé Her’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level as at year-end 2020, as measured by Best’s Capital Adequacy Ratio (BCAR). Given the company’s exposure to catastrophe losses, prospective risk-adjusted capitalisation is susceptible to volatility. The year-end 2020 BCAR scores declined compared with one year prior as a result of the company’s decision to retain some risk on Univé Schade’s motor hull programme, which was previously fully ceded. Nonetheless, the company’s BCAR scores remain comfortably above the strongest level. An offsetting factor is Univé Her’s dependence on retrocession to manage its natural catastrophe exposure; however, the risks associated with this dependence are partially offset by the high credit quality of the counterparties.

Univé Her’s underwriting results are solid, having generated a five-year (2016-2020) average combined ratio of 65.2%, and overall operating earnings are supplemented by modest investment returns reflective of the company’s conservative investment portfolio. In 2020, Univé Her reported a net profit before tax of EUR 5.9 million, underpinned by a combined ratio of 59.1% driven by a low frequency of fire losses and no natural catastrophe events. In addition, the company’s equity portfolio yielded a low but positive investment result despite the challenging economic environment following the COVID-19 outbreak. The company’s prospective technical performance is subject to volatility as it writes catastrophe-exposed property reinsurance risks.

Given its distinctive role as the group’s main reinsurer, Univé Her benefits from its exclusive access to the reinsurance business ceded by the Univé mutuals and N.V. Univé Schade. Univé Her is predominantly a monoline reinsurer; the company retains the property excess of loss reinsurance risk ceded by the regional mutuals. All other product lines are retroceded to the external reinsurance market, with the exception of motor hull insurance, which is being partially included within Univé Her’s risk appetite. An offsetting factor to the business profile assessment is the company’s limited geographical diversification, with its portfolio concentrated exclusively within the Netherlands.

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.


Giannina Carbajal Ortiz
Financial Analyst
+31 30 308 5428

Victoria Ohorodnyk
Associate Director, Analytics
+31 20 308 5432

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

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

Thank you for donating to

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation