A.M. Best Assigns Credit Ratings to GreenStars BNP Paribas, S.A.

LONDON--()--A.M. Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” to GreenStars BNP Paribas, S.A. (GreenStars) (Luxembourg), a subsidiary of BNP Paribas S.A. (BNP Paribas). The outlook assigned to these Credit Ratings (ratings) is stable.

GreenStars is an insurance entity of BNP Paribas, the parent company of a group engaged principally in banking and financial services activities. GreenStars provides credit and political risks insurance cover that supports the group’s lending operations.

The ratings reflect GreenStars’ excellent risk-adjusted capitalisation and its track record of strong operating performance, as well as its integration in BNP Paribas’ operations.

The company’s excellent risk-adjusted capitalisation is underpinned by low underwriting leverage. Furthermore, GreenStars has demonstrated good internal capital generation, with the retention of all profits since its incorporation in 2009. A partially offsetting factor is the company’s reliance on reinsurance; however, this is mitigated as GreenStars places its reinsurance cover with an appropriately diversified panel of financially strong reinsurers.

GreenStars has consistently generated strong operating results, as demonstrated by an average five-year return on capital of approximately 17% (2012-2016). The company’s strong operating performance is driven by excellent underwriting results and is supported by positive, albeit modest, investment income. Although GreenStars’ underwriting income is exposed to potential volatility, due to the company’s exposure to relatively large losses and the impact of fluctuations in reinsurance market conditions, over the longer term, A.M. Best does not expect this to hinder the company’s ability to generate capital. GreenStars’ extensive reinsurance programme is expected to protect the company from any increase in claims’ frequency or high severity losses that it may be exposed to in an intensified insolvency environment.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
George Athanasopoulos, +44 20 7397 0330
Financial Analyst
george.athanasopoulos@ambest.com
or
Timothy Prince, +44 20 7626 6264
Director, Analytics
timothy.prince@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
George Athanasopoulos, +44 20 7397 0330
Financial Analyst
george.athanasopoulos@ambest.com
or
Timothy Prince, +44 20 7626 6264
Director, Analytics
timothy.prince@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