Fitch affirms Coface AA- rating, with an outlook ‘stable’
Fitch Ratings affirmed, on August 29th 2018, Coface AA- Insurer Financial Strength (IFS) rating. The outlook remains stable.
The AA- IFS ratings of Coface North America Insurance Company and Coface Re, two other major insurance operating entities of the Group, have also been affirmed with a stable outlook.
In Fitch’s press release, the rating agency highlights that this affirmation “reflects Coface’s very strong business profile in credit-insurance, very strong ‘capitalization and leverage’, and recovering profitability, after earnings were hit by adverse claims experience in 2016”.
The rating agency believes the Group’s capitalisation is strong and its risk management framework is robust: “This view is based on Coface’s moderate multiple of nominal net credit exposure to equity and appropriate reserving. At end-June 2018, Coface’s Solvency II ratio was 163%, above the company’s target range of 140%-160%”.
As regards to the strategic plan Fit to Win launched in September 2016, “Fitch views positively Coface’s “Fit to Win” strategic plan, which is well on track(…) In 2017, Coface executed its strategic plan, repriced business and enhanced risk selection”.
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This press release, as well as COFACE SA’s integral regulatory information, can be found on http://www.coface.com/Investors