AMSTERDAM--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Greenval Insurance Company Designated Activity Company (Greenval) (Ireland). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Greenval’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Greenval is the captive motor insurer for Arval Service Lease SA (Arval), a vehicle-leasing company wholly owned by BNP Paribas SA, a global banking group headquartered in France.
Greenval’s balance sheet strength assessment of strong is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to be maintained at least at the very strong level. The company also benefits from prudent reserving, an appropriate reinsurance programme and a liquid investment portfolio.
The company’s strong operating performance track record is demonstrated by a five-year (2016-2020) average combined ratio of 79.5% (as calculated by AM Best) and a five-year (2016-2020) average return-on-equity ratio of 34.6% (as calculated by AM Best). Underwriting results have been consistently profitable, benefiting from the captive’s privileged access to Arval’s growing fleet of vehicles.
As a captive insurer providing motor insurance covers for Arval, Greenval’s underwriting portfolio is concentrated in motor insurance but is well-diversified geographically. Greenval’s neutral business profile assessment also reflects its strategic importance to Arval, as its only affiliated motor insurer. Greenval’s ERM is considered developed and appropriate for the company’s risk profile and operational scope.
AM 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.
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