AM Best Downgrades and Withdraws Credit Ratings of Axéria Prévoyance and Axéria Re Limited
The ratings of Axéria reflect the company’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also factor in drag from its parent, Andromeda Investissements, which has a weaker credit profile.
The ratings of Axéria Re reflect the reinsurer’s balance sheet strength, which AM Best categorises as adequate, as well as its strong operating performance, limited business profile and appropriate ERM.
The rating actions follow the acquisition of Axéria and Axéria Re’s parent company,
The structuring of the acquisition, through a leveraged buyout, is expected to create significant cash flow needs for Andromeda Investissements, limiting the financial flexibility of Axéria and Axéria Re. The downgrade of Axéria Re’s ratings also consider a proposed tax reassessment notified by the French tax authorities for
The negative outlooks reflect uncertainty regarding the strategic direction of the April group and the final sum that will be paid by Axéria Re in respect of the tax reassessment.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Ghislain Le Cam CFA, FRM
Director, Analytics
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Manager, Public Relations
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Source: AM Best
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