Market Overview

A.M. Best Affirms Credit Ratings of Covéa Coopérations


A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a+" of Covéa
 (France). The outlook of these Credit Ratings (ratings)
is stable.

The ratings reflect Covéa Coopérations' balance sheet strength, which
A.M. Best categorises as strongest, as well as its adequate operating
performance, favourable business profile and appropriate enterprise risk

The ratings factor in Covéa Coopérations' strategic importance to Société
de Groupe d'Assurance Mutuelle Covéa
(Covéa), a leading mutual
insurance group in France, as it is the intermediate holding company of
the group's operating entities and its principal outwards reinsurance
vehicle. In recent years, the Covéa group structure has been streamlined
so that the majority of its operating insurance companies are now held
by Covéa Coopérations. This has increased the integration of the group's
operations and enhanced the strategic alignment of its members.

As Covéa Coopérations' subsidiaries underwrite approximately 90% of
Covéa's consolidated premiums and account for around 80% of Covéa's
consolidated capital, Covéa Coopérations' balance sheet strength
assessment mirrors that of Covéa.

Likewise, Covéa Coopérations' favourable business profile assessment is
primarily underpinned by its role as the holding company of most of the
Covéa group's operating subsidiaries. As an operating entity, Covéa
Coopérations is a modest sized reinsurer, writing a start-up portfolio
of life and health reinsurance in France, as well as the group's
established international reinsurance portfolio (previously underwritten
by Assurances Mutuelles de France, a mutual member of Covéa). In
2017, the company wrote EUR 242.1 million of gross written premium, of
which EUR 28.0 million was life and health reinsurance, and the balance
derived from its international operations.

Covéa Coopérations' adequate operating performance assessment is
reflective of the performance of the Covéa group, which is driven by the
core operating subsidiaries of Covéa Coopérations. In 2017, the group
reported a non-life combined ratio of 97.5% and net income of EUR 817.8
million. On a stand-alone basis, Covéa Coopérations' has been profitable
over recent years, although results have been driven primarily by
dividends from subsidiaries. Reinsurance operations were close to
break-even in 2017, with the company returning a non-life combined ratio
of 100% in 2017 (as calculated by A.M. Best), and a marginal
underwriting loss for the life business. A.M. Best expects the company
to generate technical profits (on a stand-alone basis) over the medium
term, although investment income will remain the core driver of overall
operating earnings.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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