A.M. Best Withdraws Ratings of BNP Paribas Assurance S.A. and Its Main Subsidiaries

LONDON--(BUSINESS WIRE)-- A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit rating (ICR) of “aa” of Cardif Assurance Vie and Cardif Assurances Risques Divers (both domiciled in France). Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and downgraded the ICR to “aa-” from “aa” of Cardif Levensverzekeringen N.V. and Cardif Schadeverzekeringen N.V. (both domiciled in the Netherlands). A.M. Best also has downgraded the FSR to A- (Excellent) from A+ (Superior) and ICR to “a-” from “aa-” of Pinnacle Insurance plc(United Kingdom). All companies are subsidiaries of BNP Paribas Assurance S.A.(France).A.M. Best has affirmed the ICR of “a+” of BNP Paribas Assurance S.A. The outlook for Pinnacle Insurance plc has been revised to negative from stable; the outlook for all other ratings remains stable.

Concurrently, A.M. Best has withdrawn the ratings at the companies’ request and assigned a category NR-4 (Company Request) to the FSR and an “nr” to the ICR.

The ratings factor the implicit capital support of BNP ParibasSA, which wholly owns BNP Paribas Assurance S.A.

The ratings of BNP Paribas Assurance S.A. and its French subsidiaries, Cardif Assurance Vie and Cardif Assurances Risques Divers, reflect their strong business profile, resilient business model and continuing strong risk-adjusted capitalisation.

The downgrades of the Dutch and English subsidiaries, Cardif Levensverzekeringen N.V., Cardif Schadeverzekeringen N.V. and Pinnacle Insurance plc, respectively, reflect their significant reduction in business profile in the Netherlands and in the United Kingdom, directly suffering from the effect of the economic crisis and the tightening of the lending conditions that put significant pressure on the volume of premiums written.

The negative outlook for Pinnacle Insurance plc is driven by the uncertain effects on its market position and profitability of its decision to stop writing savings business, which used to be its technically profitable line, whilst payment protection insurance, which now constitutes the bulk of its business, remains under scrutiny by the English regulator.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; and “Rating Members of Insurance Groups”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best CompanyGhislain Le Cam, +(44) 20 7397 0268
Financial Analyst
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orVasilis Katsipis, +(44) 20 7397 0278
General Manager
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orRachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
orJim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company