AM Best has upgraded Issuer Credit Ratings of Compagnie française d’assurance pour le commerce extérieur (la Compagnie), Coface North America Insurance Company (CNAIC) and Coface Re, and assigned a stable outlook.
All the companies above are subsidiaries of Coface SA, the non-operating holding company of the Coface group.
The credit rating agency upgraded the company’s Long-Term Issuer Credit Ratings (Long-Term ICRs) from “a” (Excellent) to “a+” (Excellent) and affirmed the Financial Strength Rating of A (Excellent).
According to AM Best, the rating moves Coface’s balance sheet strength, which it assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
The ratings of la Compagnie and CNAIC consider their strategic importance to the Coface group as key operating entities. Coface Re is strategically important to the group as its sole intragroup reinsurer, AM Best noted.
This strength is underpinned by a consolidated risk-adjusted capitalization at the strongest level as measured by the Best’s Capital Adequacy Ratio (BCAR) score.
Additionally, the agency expects the group’s risk-adjusted capitalisation to remain at the strongest level prospectively, supported by good internal capital generation.
AM Best warned that “the group’s prospective performance may be subject to volatility, driven by the uncertain global operating environment. However, the group is able to take prompt risk-mitigating actions on non-performing business when required.”
Analysts also expect cross-cycle performance metrics to remain supportive of the strong assessment.
