Following the completion of the acquisition of Groupama Insurance Company Limited by Ageas UK on 14 November 2012, Standard & Poor’s has today confirmed that after reviewing Groupama Insurances’ financial and business risk profiles, it is raising the company’s financial strength rating to ‘BBB’ with a “stable outlook”. Previously, the UK business rating was constrained by its previous parent company, but Standard & Poor’s has recognised in its new rating, the inherent financial strength and solvency position of Groupama Insurances in the UK.
Standard & Poor’s took a number of factors into consideration in making its decision to upgrade Groupama Insurances’ credit rating. This includes the company’s good competitive position, strengthened by its established and diversified broker base, its strong niche focus, a significant improvement in Groupama Insurances’ operating performance, its appropriate level of reserving and reinsurance cover and its capitalisation, which Standard & Poor’s described as “good and stable”.
Commenting on Standard & Poor’s announcement, Barry Smith, CEO of Ageas UK said:
“This is good news for brokers and customers as it creates additional stability and certainty for them to continue to trade with Groupama Insurances. They now have independent confirmation that they are dealing with a financially strong and well capitalised business geared towards meeting their needs.”
François-Xavier Boisseau CEO of Groupama Insurances added:
“We have a strong and profitable business which has robust solvency levels and it is very pleasing that Standard & Poor’s have confirmed this today. Our brokers have been very supportive as we have continued to trade strongly with them. I would like to thank our brokers again for their support and look forward to working with them during 2013.”