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” 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) remains

The ratings reflect Univé Her’s balance sheet strength, which AM Best
categorises 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 the group’s
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
2018, as measured by Best’s Capital Adequacy Ratio (BCAR), despite the
adverse impact of the year’s windstorm losses. Given the company’s
exposure to catastrophe losses, prospective risk-adjusted capitalisation
is susceptible to volatility. Nevertheless, AM Best expects
risk-adjusted capitalisation to remain at the strongest level over the
medium term, supported by Univé Her’s rigorous capital management policy
and its robust retrocession programme. An offsetting factor is the
company’s dependence on retrocession to manage its natural catastrophe

Univé Her’s underwriting results are solid, having generated a five-year
(2014-2018) average combined ratio (COR) of 60.8%, and overall operating
earnings are supplemented by modest investment returns reflective of the
company’s conservative investment portfolio. In 2018, Univé Her reported
an operating loss of approximately EUR 0.8 million, underpinned by an
elevated COR of approximately 104% driven by natural catastrophe losses.
In addition, unrealised losses on the company’s equity portfolio yielded
a negative investment result. Assuming normalised catastrophe
experience, AM Best expects that the company will deliver robust
operating profits for year-end 2019.

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 a monoline
reinsurer; the company solely retains the property excess of loss
reinsurance risk ceded by the regional mutuals. All other product lines
are retroceded to the external reinsurance market. An offsetting factor
to the business profile assessment is the company’s limited geographical
diversification, with its portfolio concentrated exclusively within the

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
for more information

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its


Jalpa Thanky, FIA
Senior Financial Analyst
+31 20
308 5430

Director, Analytics
+31 20 308 5427

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

Director, Public Relations

+1 908 439 2200, ext.

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