AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to CattRe S.A. (CattRe) (Luxembourg). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect CattRe’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also consider, in the form of rating lift, AM Best’s expectation that Assicurazioni Generali S.p.A. (Generali) will provide explicit support to CattRe if needed.
CattRe’s balance sheet strength benefits from its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level in 2020. AM Best expects the company’s risk-adjusted capitalisation to remain at the strongest level through the medium term. Limiting factors to the balance sheet strength assessment include the company’s dependence on retrocession and the potential for volatility in capitalisation metrics, driven by the company’s small capital base.
CattRe’s operating performance has been in line with management’s expectations since Societa Cattolica di Assicurazione S.p.A. (Cattolica) acquired the company in 2018. In 2020, the company reported a pre-tax profit of EUR 5 million and a combined ratio of 88% (as calculated by AM Best). Technical results are expected to remain stable into 2021.
CattRe is a wholly owned subsidiary of Cattolica based in Luxembourg that focuses on reinsuring specialty lines. The company uses managing general agent (MGA) subsidiaries in Italy to source business and expects to continue to develop its MGA platform as part of its growth strategy. Additionally, CattRe reinsures business written by other subsidiaries of Cattolica in Italy. The company has grown largely during its first years of operation, with gross written premium amounting to EUR 84 million in 2020.
CattRe is regulated by the Luxembourg regulator, the Commissariat aux Assurances, and follows the Solvency II regulation. The company manages key risks through an effective control framework, which includes outsourced functions, such as underwriting controls at its subsidiary MGAs. AM Best expects that CattRe will benefit from the Generali group’s well-developed control system framework.
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 www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
+31 20 308 5429
Manager, Public Relations
+1 908 439 2200, ext. 5159
Dr. Angela Yeo
Senior Director, Analytics
+31 20 308 5421
+1 908 439 2200, ext. 5644
Thank you for donating to DutchNews.nl
The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.
DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.