S&P Global Ratings has raised REVO Insurance, S.p.A.’s, an Italian insurer specialised in parametric policies and specialty lines, rating from BBB+ to A- with a stable outlook.
According to the rating agency, the upgraded rating reflects the insurer’s “profitable growth across all the business lines maintaining its leadership in the Surety market”; and “the optimisation of reinsurance programmes, which are robust and appropriate for the level of risk exposure.”
The A- rating also reflects the fact that the management team has shown it has the ability to foster the growth process, as well as the company’s long-term financial solidity and its prudent risk management.
Additionally, REVO’s level of capitalization and profitability, described as excellent, enabled it to pass the adequacy test in accordance with S&P’s updated risk-based capital model.
REVO’s passing of the Italian sovereign debt stress test also contributed to the upgrade, which helped confirm the company’s ability to withstand an Italian default.
Alberto Minali, Chief Executive Officer of REVO Insurance, commented: “The S&P rating upgrade confirms the team’s ability to reach and overtake the Business Plan strategic goals, maintaining high profitability.
“Our ability to diversify has been considered a strategic driver both in terms of financial investments, featured by a prudent approach, and in the insurance business, thanks to the expansion to SME and professional segment. This driver will be generating further development abroad, with the opening of a new branch in Spain, confirming the scalability of the REVO model.”
S&P also noted that REVO will continue to grow profitably by continuing the process of diversifying its business portfolio over the next two years.
It plans to achieve this while also maintaining a strong capitalisation and pursuing prudent risk management.
