AM Best affirms A- rating for Greenval with stable outlook

AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Greenval Insurance Designated Activity Company (Greenval). The outlook of these 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.

Greenval is the captive motor insurer for Arval Service Lease, a vehicle-leasing company wholly owned by BNP Paribas, a global banking group headquartered in France.

Greenval’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the very strong level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s risk-adjusted capitalisation is expected to remain at least at the strong level prospectively. The balance sheet strength assessment also considers the company’s prudent reserving, appropriate reinsurance programme and liquid investment portfolio.

According to AM Best Greenval has a track record of a strong operating performance, as demonstrated by a return on capital and surplus of 36.3% and a combined ratio (net/gross) of 84.4% in 2024 under IFRS 17. Underwriting results have been consistently strong, benefiting from the captive’s privileged access to Arval’s good quality business.

As a captive insurer providing motor insurance covers for Arval, Greenval’s underwriting portfolio is concentrated in motor insurance, but well-diversified geographically. Greenval’s neutral business profile assessment also reflects its strategic importance to Arval, as its only affiliated motor insurer.

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