This is the first interactive rating for AIL following the decision by Standard and Poor’s to remove public information ratings in November last year, where AIL held a BBBpi rating since 2008.
The decision reflects AIL’s strategic importance and materiality to Ageas, where the UK business is a key contributor to its parent’s targets, and aligns AIL’s IFS rating with the other ‘core’ operating entities. As the largest company by Non-Life premiums for Ageas, AIL accounts for over 40% of consolidated non-life inflows and 17% of Ageas’s total consolidated inflows,* with a Combined Operating Ratio of less than 100% at 99.8%.
Commenting on the rating, François-Xavier Boisseau Chief Executive Officer, Insurance said: “The achievement of a ‘Strong’ rating at a time when the industry is facing challenging conditions demonstrates the confidence that Fitch has in AIL’s financial strength, underwriting discipline and risk management. The rating should in return give brokers additional confidence that we’re in a good place to meet their customers’ obligations. We look forward to building on this as part of our ongoing strategy to grow, especially in the non-standard and Commercial markets where we’re focused on developing our e-trade and scheme propositions.”
Investing in its long-term Non-Life strategy, the business announced the acquisition of the Groupama Insurance Company Limited in November 2012, supported by a loan from Ageas Group. Ageas UK has now repaid the loan in full and is continuing with its programme of integration with AIL to offer brokers greater product choice and expertise across Personal and Commercial lines. At the end of 2014, Ageas UK also announced the sale of Ageas Protect to AIG Limited allowing it to focus on its core ‘Non-Life’ proposition.
Long-Term International IFS Rating – A: Strong:
'A' IFS Ratings denote a low expectation of ceased or interrupted payments. They indicate strong capacity to meet policyholder and contract obligations. This capacity may, nonetheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.
“+” is applied to a rating to indicate the relative position of a credit within the rating category.
* Ageas UK 2014 results https://www.ageas.co.uk/newsroom/ageas-uk-delivers-profitable-performance-in-2014/
Ageas UK is a leading provider of award-winning insurance solutions in the United Kingdom. It distributes Personal and Commercial products underwritten by Ageas Insurance Limited through brokers, intermediaries, affinity partners, the internet and through its own wholly or part-owned companies trading as Ageas Retail, which also distributes products of other providers. Ageas Retail’s brands include Castle Cover, Kwik Fit Insurance Services and RIAS. Ageas UK also holds a 50.1% share in Tesco Underwriting, providing home and motor insurance to Tesco Bank customers.