Market Overview

A.M. Best Affirms Credit Ratings of GreenStars BNP Paribas, S.A.


A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a+" of GreenStars
BNP Paribas, S.A. (GreenStars) (Luxembourg), a subsidiary of BNP
Paribas S.A. (BNP Paribas). The outlook of these Credit Ratings
(ratings) remains stable.

The ratings reflect GreenStars' balance sheet strength, which A.M. Best
categorises as strongest, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.

GreenStars' balance sheet strength is supported by risk-adjusted
capitalisation at the strongest level, as measured by Best's Capital
Adequacy Ratio (BCAR). A.M. Best expects GreenStars' risk-adjusted
capitalisation to remain at the strongest level, supported by good
internal capital generation, modest growth and a low net underwriting
leverage. Furthermore, the company's balance sheet strength and
financial flexibility benefit from its affiliation with a financially
strong ultimate parent, BNP Paribas. The shareholder has allowed
GreenStars to retain all of its earnings since its incorporation in
2009. An offsetting rating factor remains the company's high reliance on
reinsurance; however, this is mitigated partly by GreenStars'
diversified panel of financially strong reinsurers.

GreenStars' strong operating performance is demonstrated by its
five-year average return on capital and surplus of 17.4%. Performance is
driven largely by the captive's low loss experience, which helps it to
obtain high inwards ceding and profit commissions. Over the longer term,
performance is subject to potential volatility due to the company's
exposure to a possible accumulation of losses and to the impact of
fluctuations in reinsurance market conditions. The company partly
mitigates the potential aggregation of losses by purchasing extensive

GreenStars provides support for BNP Paribas' lending operations, as a
credit-risk management tool. Its business profile benefits from having
direct access to the group's good quality credit risks. While GreenStars
is concentrated in credit insurance, its business profile assessment
reflects its diversification by geography, type of credit risk and

A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated throughout the
world. For current Best's Credit Ratings and independent data on the
captive and alternative risk transfer insurance market, please visit

This press release relates to rating(s) 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
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unique focus on the insurance industry. Visit
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