A.M. Best Upgrades Ratings of AXA Global P&C

LONDON--(BUSINESS WIRE)-- A.M. Best has upgraded the financial strength rating to A+ (Superior) from A (Excellent) and the issuer credit rating to “aa-” from “a+” of AXA Global P&C (AGPC) (France). The outlook for both ratings remains stable.

The rating upgrade reflects a strengthening in A.M. Best’s view of the strategic importance of AGPC to the AXA group. AGPC is viewed to be deeply integrated with the group’s non-life underwriting operations and risk management function. In addition, the ratings continue to reflect AGPC’s robust technical performance and solid enterprise risk management (ERM).

AGPC is wholly owned by AXA S.A. and is the AXA group’s property and casualty centre for underwriting expertise as well as its non-life reinsurance platform. The company plays a fundamental role for the group in optimising capital resources through internal risk transfer and securing non-life reinsurance. As a rule, non-life treaties for the AXA group entities are ceded to AGPC. The company’s premium base relates solely to group related business and as such AGPC does not currently assume third-party business.

AGPC has a track record of solid underwriting performance, as evidenced by a five-year average combined ratio of 96.8% (2010-2014). The company’s ERM framework is viewed as very strong, with solid governance arrangements and integration with AXA S.A., giving mutual benefit to the AXA group and AGPC.

An offsetting rating factor is AGPC’s level of stand-alone risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio. A.M. Best expects that given the importance and role of AGPC within the AXA group, the company’s capital adequacy would not fall below regulatory solvency requirements. For this reason, A.M. Best expects that AXA S.A. would provide prompt and sufficient financial support to AGPC if required.

The ratings of AGPC continue to benefit from rating enhancement from AXA S.A., reflecting the company’s strategic importance and integration with the AXA group. As such, any change in the company’s role within the group or any deterioration in the financial strength or perceived support afforded by its parent, may result in a change to the ratings of AGPC.

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.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Myles Gould, +(44) 20 7397 0267

Senior Financial Analyst

myles.gould@ambest.com

or

Ghislain Le Cam, CFA, +(44) 20 7397 0268

Associate Director, Analytics

ghislain.lecam@ambest.com

or

Christopher Sharkey, +(1) 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +(1) 908 439 2200, ext. 5644

Assistant Vice President, Public Relations

james.peavy@ambest.com

Source: A.M. Best