20 October 2022Analysis

Fitch affirms Crédit Agricole captive ratings

Fitch Ratings has affirmed Luxembourg-based CAMCA Assurance’s (CAA) and CAMCA Réassurance's (CAR) Long-Term Issuer Default Ratings (IDR) at 'A+'. At the same time, Fitch has affirmed CAA's and CAR's Insurer Financial Strength (IFS) Ratings at 'A+'.

The outlooks are stable.

Fitch said that CAA's and CAR's ratings reflect their high level of integration with Crédit Agricole (CA) and importance to the bank's business model.

Fitch pointed out that CAA and CAR are ultimately owned by CA's 39 regional banks (caisses régionales). CA is a cooperative banking group bound by strong and cohesive solidarity mechanisms encompassing its 39 caisses régionales, Credit Agricole S.A. (CA S.A.) - the group's listed central body - and Credit Agricole Corporate and Investment Bank (CACIB).

Fitch therefore assigned group ratings and has the same IDRs for CA, CA S.A. and CACIB. Fitch does not rate the caisses régionales, but CA's IDRs would also apply to them if Fitch did rate them.

The ratings reflect Fitch’s view that CAA and CAR (jointly CAMCA) are core captive companies of CA, as CAMCA's mission and strategic goals are intricately tied to CA's risk management. The rating agency believes that CA's regional banks will provide support to their core captive insurance subsidiaries, if needed.