28 July 2022Reinsurance

AM Best affirms Greenval ratings

AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Greenval Insurance Company. The outlook of 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, a vehicle-leasing company wholly owned by BNP Paribas, a global banking group headquartered in France.

AM Best said that Greenval’s balance sheet strength assessment of strong is underpinned by its very strong level of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio. 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 (2017-2021) average combined ratio of 77.4% (as calculated by AM Best) and a five-year (2017-2021) average return-on-equity ratio of 38.3% (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 well-diversified geographically, said AM Best. 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.