LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of AXA Global P&C (AGPC) (France). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect AGPC’s strategic importance to the AXA group, its robust technical performance and solid enterprise risk management (ERM) framework. A.M. Best continues to view AGPC as deeply integrated with the AXA group’s non-life underwriting operations and risk management function.
AGPC is wholly owned by AXA S.A. and is the AXA group’s property/casualty centre for underwriting expertise, as well as its non-life reinsurance platform. The company plays a fundamental role for the group in optimising capital resources through internal risk transfer and securing non-life reinsurance. As a rule, non-life treaties for the AXA group entities are ceded to AGPC. The company’s premium base relates solely to group-related business and therefore, AGPC currently does not assume third-party business.
AGPC has a track record of solid underwriting performance, as evidenced by a five-year average combined ratio of 95.8% (2011-2015). The company’s ERM framework is viewed as very strong and deeply integrated with the AXA group, benefiting AGPC and the overall group.
An offsetting rating factor is AGPC’s low level of stand-alone risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio. A.M. Best expects that given the importance and role of AGPC within the AXA group, the company’s capital adequacy would not fall below regulatory solvency requirements. For this reason, A.M. Best expects that AXA S.A. would provide prompt and sufficient financial support to AGPC if required.
AGPC’s ratings continue to benefit from rating enhancement from AXA S.A., reflecting the company’s strategic importance and integration with the AXA group.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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