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AM Best Affirms Credit Ratings of Cov?a Coop?rations

BY Business Wire | CORPORATE | 02/07/25 09:59 AM EST

AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of ?aa-? (Superior) of Cov?a Coop?rations (France), the intermediate operating holding company of Soci?t? de Groupe d?Assurance Mutuelle Cov?a (Cov?a or the group), a leading mutual insurance group in France. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Cov?a?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.

Cov?a?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 Cov?a?s risk-adjusted capitalisation to remain at the strongest level prospectively.

The adequate operating performance assessment takes into account Cov?a?s track record of stable earnings, underpinned by a weighted average return-on-equity ratio of 5.1% for the five-year period ending in 2023, as calculated by AM Best. The group?s earning profile is well-diversified, with prospective metrics expected to continue to benefit from the contribution of PartnerRe Ltd. (PartnerRe), as was the case in 2022 and 2023.

Cov?a 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 in July 2022 has significantly enhanced the group?s product and geographic diversification. PartnerRe provides both life and non-life reinsurance 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright ? 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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