Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

AM Best Affirms Credit Ratings of Solunion Seguros, Compania Internacional de Seguros y Reaseguros S.A.

Document Cited in Related
Vincent

ENPNewswire-September 6, 2021--AM Best Affirms Credit Ratings of Solunion Seguros, Compania Internacional de Seguros y Reaseguros S.A

(C)2021 ENPublishing - http://www.enpublishing.co.uk

Release date- 03092021 - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' (Excellent) of Solunion Seguros, Compania Internacional de Seguros y Reaseguros S.A. (Solunion) (Spain).

The outlook of these Credit Ratings (ratings) is stable.

Solunion is the operating holding company of the Solunion group of companies, a 50-50 joint venture between MAPFRE Participaciones, S.A.U., a wholly owned subsidiary of MAPFRE S.A. (MAPFRE), and Euler Hermes Luxembourg Holding S.a.r.l., a subsidiary of Euler Hermes Group S.A. (Euler Hermes). Allianz SE is the ultimate parent of Euler Hermes.

The ratings reflect Solunion'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 the strategic and operational support Solunion receives from its joint shareholders, including significant reinsurance support in the form of quota-share arrangements and excess of loss protection.

Solunion's balance sheet strength assessment 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). The balance sheet strength assessment is supported further by Solunion's prudent reserving approach and conservative investment strategy. Solunion is highly dependent on reinsurance, but the associated risk is considered limited, as reinsurance arrangements are solely with the company's shareholders.

Solunion has been consistently profitable over the recent years, reporting a five-year weighted average combined ratio of 89.5% and return on equity of 6.4% (2016-2020). As at June 2021, results were positive and in line with the budget, despite the ongoing challenging economic environment. An offsetting factor is the uncertainty around the sustainability of the trade credit results in light of the economic consequences of the COVID-19 pandemic in the markets where...

To continue reading

Request your trial
COPYRIGHT Normans Media Ltd.

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT