AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of CCR Re.
The ratings have been removed from under review with developing implications following the completion of the sale of a majority stake in CCR Re to a newly formed consortium consisting of Societe Mutuelle d’Assurance du Batiment et des Travaux Publics (SMABTP) and MACSF.
Following the closing of the transaction, the consortium is the majority shareholder of CCR Re, with a minority stake held by Caisse Centrale de Réassurance.
The deal includes further mechanisms for SMABTP and MACSF to acquire the remaining interest in CCR Re in 2026.
AM Best suggests that the ratings reflect CCR Re’s balance sheet strength, which it assesses as “very strong”, as well as CCR Re’s adequate operating performance, neutral business profile and appropriate enterprise risk management. The outlook assigned to these Credit Ratings is stable.
“CCR Re’s balance sheet strength assessment reflects its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR),” Best explains.
The rating agency continues, “SMABTP and MACSF will contribute an additional EUR 200 million to CCR Re’s capital base in 2023.
“The assessment also factors in the company’s low dependence on reinsurance, conservative reserving practices, and its liquid and good quality investment portfolio.
“CCR Re has demonstrated its financial flexibility most recently with the issuance of EUR 300 million of subordinated debt in 2020.”
AM Best concludes, “CCR Re has been profitable since its creation as a stand-alone company in 2016, with profits stemming from both underwriting and investments.
“CCR Re’s neutral business profile is supported by its established presence in the international reinsurance market, with the company writing a well-diversified underwriting portfolio and benefiting from its long-established brand.”
In related news, S&P recently announced an upgrade in the issuer credit and financial strength ratings of CCR Re, raising them from ‘A-‘ to ‘A.
S&P Global Ratings now considers CCR Re a strategically important subsidiary of SMABTP.
“The profitable reinsurance operations of CCR Re provide valuable geographic and business diversification to SMABTP’s existing operations,” S&P said.
