AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of Covéa Coopérations (France), the intermediate operating holding company of Société de Groupe d’Assurance Mutuelle Covéa (Covéa or the group), a leading mutual insurance group in France. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Covéa’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favourable business profile and appropriate enterprise risk management.

Covéa’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as a liquid and conservative investment portfolio, and prudent reserving practices. AM Best expects Covéa’s risk-adjusted capitalisation to remain at the strongest level prospectively.

The adequate operating performance assessment takes into account Covéa’s track record of stable earnings, underpinned by a weighted average return-on-equity ratio of 4.6% for the five-year period ending in 2022, as calculated by AM Best. The group’s earning profile is well-diversified, with prospective metrics expected to improve with the contribution of PartnerRe Ltd. (PartnerRe) to the group’s results.

Covea has a strong presence in the French market, where it benefits from a large, well-established customer base and strong distribution capabilities. The acquisition of PartnerRe has significantly enhanced the group’s product and geographic diversification. PartnerRe provides both life and non-life reinsurance coverage on a worldwide basis and is one of the largest reinsurers globally.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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