AM Best Affirms Credit Ratings of Atradius N.V.’s Main Operating Subsidiaries
18 Julio 2024 - 10:40AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings of “a+”
(Excellent) of Atradius Crédito y Caución S.A. de Seguros y
Reaseguros (ACyC) (Spain), Atradius Trade Credit Insurance, Inc.
(ATCI) (United States) and Atradius Seguros de Crédito, S.A.
(Atradius Mexico) (Mexico), which are the main operating
subsidiaries of the non-operating holding company, Atradius N.V.
(Atradius) (Netherlands). Concurrently, AM Best has affirmed the
Long-Term Issue Credit Rating of “bbb+” (Good) of the EUR 250
million (outstanding amount EUR 7.9 million), 5.25% subordinated
fixed to floating rate guaranteed notes, due 2044, issued by
Atradius Finance B.V. (Netherlands) and unconditionally and
irrevocably guaranteed on a subordinated basis by Atradius. The
outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Atradius’ balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, favourable business profile and appropriate enterprise
risk management. The ratings of ACyC, ATCI and Atradius Mexico
consider their strategic importance to Atradius as its primary
underwriting entities in the group’s key markets around the
world.
Atradius’ balance sheet strength is underpinned by its
consolidated risk-adjusted capitalisation, as measured by Best’s
Capital Adequacy Ratio (BCAR), which remained at the strongest
level at year-end 2023. AM Best expects Atradius’ prospective
risk-adjusted capitalisation to be maintained at the strongest
level, supported by good internal capital generation over the cycle
and conservative capital management. The group’s balance sheet
strength assessment also benefits from its good liquidity profile
and relatively conservative investment portfolio. A partly
offsetting factor in the assessment is the group’s high dependence
on reinsurance, although the risks associated with this dependence
are mitigated partially through the use of a well-diversified panel
of reinsurance counterparties of excellent credit quality.
Atradius has a track record of strong operating performance over
the cycle. At year-end 2023, the group’s return on equity (ROE) was
14% under IFRS 17, which compares with a 10-year weighted ROE ratio
of 11% for the period 2013-2022 under IFRS 4. Claims frequency
increased in 2023 from the low levels recorded in 2021 and 2022;
however, the group’s underwriting performance remained robust. AM
Best believes that Atradius’ strong underwriting expertise and
exposure management, together with its ability to take prompt
risk-mitigating actions on non-performing business, will allow it
to maintain a strong performance record over the cycle.
Atradius benefits from a leading position in the global credit
insurance market, which is characterised by high barriers to entry.
Although the group is largely a monoline insurer, its exposures are
well-diversified by geography and industry. Atradius’ favourable
business profile is underpinned by its good access to key markets
as a result of the group’s strong global franchise and
comprehensive network of agents and intermediaries.
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 © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718815867/en/
Juan A. Villaescusa Prades Financial Analyst +31
636162585 juan.villaescusa@ambest.com Mathilde Jakobsen
Senior Director, Analytics +31 20 808 3118
mathilde.jakobsen@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public Relations
Specialist +1 908 882 2318 al.slavin@ambest.com