A.M. Best Affirms Credit Ratings of UnipolRe Designated Activity Company

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of UnipolRe Designated Activity Company (UnipolRe) (Ireland). The outlook of these Credit Ratings (ratings) remains stable.

The rating affirmations reflect UnipolRe’s excellent risk-adjusted capitalisation and good operating performance. In addition, the ratings consider UnipolRe’s strategic importance to its parent, UnipolSai Assicurazioni S.p.A. (UnipolSai).

UnipolRe operates as a European third-party reinsurer, having been, until the end of 2014, a group reinsurance captive. A.M. Best expects the company’s risk-adjusted capitalisation to remain at an excellent level over the medium term, with additional capital contributions from its parent supporting expansion in line with the company’s new business strategy.

The company seeks to differentiate itself by developing close partnerships with its cedants and assisting them in the optimisation of their reinsurance programme. However, persisting soft and competitive market conditions represent a key headwind to UnipolRe’s profitable growth plans. The main classes of business written in 2016 were motor third-party liability and property reinsurance. The company reported gross written premiums of EUR 56.5 million in 2016 and is expected to increase significantly its business volumes in 2017. An offsetting rating factor is the risk inherent in rapid premium growth predominantly in one line of business.

As UnipolRe extends its client base, the company’s business profile is likely to be enhanced by its association with UnipolSai. The group operates predominantly within Italy and is well-known throughout Western Europe, given its leading position in Italy’s non-life and life insurance markets.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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A.M. Best

Alvise Argenton, +44 20 7397 0293

Financial Analyst

alvise.argenton@ambest.com

or

Catherine Thomas, +44 20 7397 0281

Senior Director, Analytics

catheine.thomas@ambest.com

or

Christopher Sharkey, +1 908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

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Jim Peavy, +1 908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best