Fitch affirms Coface AA- rating, with an outlook ‘stable’
Fitch Ratings affirmed, on September 8th 2017, Coface AA- Insurer Financial Strength (IFS) rating. The outlook is stable.
The AA- IFSR of Coface North America Insurance Company and Coface Re, two other major insurance operating entities in the group, have also been affirmed, with outlook stable.
In its press release, the rating agency highlights that this affirmation “reflects Coface’s very strong business profile in credit-insurance, very strong ‘capitalization and leverage’, and profitability, although earnings were hit by adverse claims experience in 2016”.
According to Fitch, the Group “has strong franchise in credit insurance with a high level of geographical diversification”, which supports its solid business profile.
The rating agency continues to view the Group’s risk management framework as robust: “This view is based on Coface’s modest multiple of nominal net credit exposure to equity and appropriate reserving, as well as on its Solvency II position”.
As regards to the strategic planFit to Winlaunched last year, “Fitch believes Coface is on track to achieve its 2019 targets”.
Xavier Durand, CEO of Coface, commented:
“This decision highlights Coface’s unique and differentiated position in the market and is a testament to the quality of its teams, risk management discipline and capital position. We welcome the comments made by Fitch, which reflect the good execution coming nearly a year after the launch of ourFit to Winstrategic plan, which aims at transforming Coface into the most agile global trade credit partner in the industry, while evolving to a more efficient capital model.
We are moving forward the value creation objectives we have set for ourselves for the next three-year. All our teams are mobilized to provide our clients and partners worldwide with best-in-class services, supported by a strong balance sheet.”