AM Best affirms the credit ratings of Assicurazioni Generali SpA and its main subsidiaries; Assigns Ratings to Europ Assistance SA

AM Best confirmed the financial strength rating (FSR) of A (excellent) and the long-term issuer credit ratings (long-term ICR) of “a +” (excellent) of Assicurazioni Generali SpA. (General) (Italy) and its main rated subsidiaries.

The outlook for these credit ratings (ratings) is stable. In addition, AM Best confirmed the long-term issue credit ratings (long-term IR) of debt instruments issued or guaranteed by Generali. At the same time, AM Best awarded an FSR of A (Excellent) and a long-term ICR of ‘a +’ (Excellent) to Europ Assistance SA The outlook attributed to these ratings is stable. (Please see below for a detailed list of companies and ratings.)

The ratings reflect the strength of Generali’s balance sheet, which AM Best considers strong, as well as its strong operational performance, very favorable business profile and appropriate management of business risks.

The strength of Generali’s balance sheet is based on its risk-adjusted capitalization at the highest level, as measured by Best’s capital adequacy ratio (BCAR). The group had a Solvency II SCR ratio of 233% at September 30, 2021 (YE 2020: 224%). The offsetting factors in the valuation include the group’s significant exposure to Italian sovereign bonds, amounting to € 61.0 billion, or 203% of equity, at the end of 2020. While debt is held primarily against participating life insurance contracts, the position introduces potential volatility on regulatory solvency and capitalization levels risk-adjusted.

Generali’s solid operational performance is driven by solid technical performance. Underwriting results are supported by the group’s non-life businesses, which produced average combined ratios of 92.1% over the five-year period ending in 2020, as calculated by AM Best. The group’s life underwriting results declined in 2020, driven by a legacy savings portfolio with high interest rate guarantees, but AM Best expects the group’s continued focus on products. low capitalization and low collateral improves the profitability of this line. The effects of the COVID-19 pandemic have been mixed, with the benefits of a lower claim frequency on auto lines being offset by higher volatility on the investment portfolio’s unrealized gain position. In the longer term, results should return to historical norms. During the first nine months of 2021, the group’s net profit was 2.3 billion euros, up 74% compared to the same period in 2020.

Generali’s very favorable commercial profile is based on its leading and defensible positions in its key markets. The group has a solid franchise, reinforced by its excellent market access thanks to its solid proprietary network and its multi-channel distribution strategy. The group continued to develop its asset management activities, with third party assets under management remaining stable during the COVID-19 pandemic in 117 billion euros through September 30, 2021 (end of 2020: 104 billion euros). The activity offers the group a diversified source of income.

The FSR of A (Excellent) and long-term ICRs of ‘a +’ (Excellent) were confirmed with a stable outlook for Assicurazioni Generali SpA. and its following subsidiaries:

Generali Italia SpA.

Generali Deutschland AG

COSMOS Lebensversicherungs AG

COSMOS Versicherung AG

Generali Vie SA

Generali IARD SA

Generali Ceska pojiSt’ovna like

Generali Spain, Sociedad Anonima de Seguros y Reaseguros

Generali Deutschland Versicherung AG

Generali Deutschland Krankenversicherung AG

Generali Deutschland Lebensversicherung AG

The FSR of A (Excellent) and the Long Term ICR of ‘a +’ (Excellent) were awarded with a stable outlook for the following subsidiary:

Europ Assistance SA

The long-term ICR of “bbb +” (good) was confirmed with a stable outlook for Generali France SA

The following long-term IRs have been confirmed with a stable outlook:

Assicurazioni Generali SpA.-

‘a’ (Excellent) on 1,750 million euros 5.125% Senior Unsecured Bonds, due 2024

‘a-‘ (Excellent) on € 1,250 million Senior subordinated notes at 5.5% fixed / variable rate, due

2047 (callable in 2027)

‘a-‘ (Excellent) on 850 million euros Senior subordinated notes at 5% fixed / variable rate, maturing in 2048

(callable in 2028)

‘a-‘ (Excellent) on 1,000 million euros Senior subordinated notes at 4.125% at fixed rate, maturing in 2026

‘a-‘ (Excellent) on € 1,250 million Senior subordinated notes at 7.75% fixed / variable rate, maturing in 2042

(callable in 2022) (including 467 million euros remains pending)

‘a-‘ (Excellent) on 750 million euros Senior subordinated notes with fixed / variable rate at 10.125%, maturing in 2042

(callable in 2022) (including 302 million euros remains pending)

‘a-‘ (Excellent) on 500 million euros, 3.875% senior fixed rate subordinated bonds, maturing in 2029

‘a-‘ (Excellent) on 750 million euros, 2.124% senior fixed rate subordinated bonds, maturing in 2030

‘bbb +’ (good) enabled £ 495 million 6.416% fixed / variable rate junior subordinate perpetual

debentures redeemable in 2022 (including £ 167 million remains pending)

‘bbb +’ (good) enabled £ 350 million 6.269% fixed / variable rate junior subordinate perpetual

bonds repayable in 2026

‘bbb +’ (good) enabled 1,500 million euros 4.596% fixed / variable rate more deeply subordinated perpetual

tickets (originally issued by Generali Finance BV.)

The following indicative long-term IRs on the securities available under the 15 billion euros medium term note program were confirmed as stated, with stable outlook:

Assicurazioni Generali SpA.-

“A” (Excellent) on all senior unsecured notes to be issued under the program

“A-” (Excellent) on all senior subordinated notes to be issued under the program

“Bbb +” (bon) on all subordinated bonds of a lower rank to be issued within the framework of the program

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this post, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based at United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico.


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