A.M. Best Upgrades Issuer Credit Ratings of Core Traditional Business Subsidiaries of Grupo Catalana Occidente, S.A.
The ratings of SCO reflect its balance sheet strength, which
The rating actions reflect GCO’s improved credit fundamentals, characterised by the strongest level of consolidated risk-adjusted capitalisation, supported by solid and sustainable earnings from traditional and credit insurance business in recent years. The ratings also incorporate GCO’s favourable business profile achieved through its traditional and credit insurance subsidiaries, which are among leaders in their respective markets.
SCO’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also factors in SCO’s significant exposure to Spanish bonds, which have the potential to introduce volatility. Nonetheless,
SCO has a track record of generating strong operating performance as evidenced by a five-year (2013-2017) weighted average combined ratio and return on equity of 86.4% and 19.4%, respectively. SCO’s technical results were profitable across most non-life and life business segments, despite competitive market conditions, from local and global insurers in the company’s domestic market of
GCO’s traditional business units maintain a strong position in its domestic market as a top six insurer by premium volumes. SCO is the leading insurance entity within GCO’s traditional business unit, writing approximately 26% of GCO’s consolidated written premium in 2017. SCO, SB and PU operate exclusively in
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
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Jessica Botelho, CA, +44 20 7397 0310
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