A.M. Best Affirms Credit Ratings of UnipolSai Assicurazioni S.p.A.

LONDON--()--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of UnipolSai Assicurazioni S.p.A. (UnipolSai) (Italy), the main operating entity of Unipol Gruppo Finanziario S.p.A. The outlook of these Credit Ratings (ratings) is stable.

The ratings of UnipolSai reflect its well-established market position as one of the leading insurers in Italy, its solid risk-adjusted capitalisation and its good operating performance.

An offsetting rating factor is the company’s exposure to Italian government bonds, which represent a significant, albeit decreasing share of its investment portfolio. The company’s underwriting portfolio also is concentrated in Italy, where economic growth is slow. These rating factors are mitigated partly by the company’s solid risk management.

UnipolSai was created on 6 January 2014, following the merger of Fondiaria-Sai S.p.A., Milano Assicurazioni S.p.A., Premafin HP S.p.A. and Unipol Assicurazioni S.p.A. The company is the leading insurer in the non-life market in Italy, with a large motor third-party liability portfolio, and has a strong position in the domestic life market.

Since the merger, UnipolSai has streamlined its operations and consolidated its strong competitive position in Italy, which is supported by a network of agencies across the country. Significant claims data, as well as investment in telematics solutions and tools such as a claims settlement model, should continue to support pricing, customer service and claims handling, with positive implications for underwriting results.

In each of its first three years of operation as a combined entity, UnipolSai has reported good operating results, with consolidated pre-tax profits of EUR 681 million in 2016, EUR 1,044 million in 2015 and EUR 1,142 million in 2014. In 2016, positive contribution came from the technical account (with a non-life combined ratio of 95.7% and a life new business margin of 17%) and investments. A.M. Best expects the strengthening of UnipolSai’s leading position in digital innovation to support prospective performance.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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Contacts

A.M. Best
Alvise Argenton, +44 20 7397 0293
Financial Analyst
alvise.argenton@ambest.com
or
Catherine Thomas, +44 20 7397 0281
Senior Director, Analytics
catherine.thomas@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Alvise Argenton, +44 20 7397 0293
Financial Analyst
alvise.argenton@ambest.com
or
Catherine Thomas, +44 20 7397 0281
Senior Director, Analytics
catherine.thomas@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com