France-based CCR Re is no longer “under review” by AM Best, following the completion of the sale of a majority stake in the company to a newly-formed consortium.
The ratings company has now affirmed CCR Re’s financial strength rating as A (Excellent) with the long-term issuer credit rating of “a.”.
The outlook assigned to these ratings is stable.
The association consists of Societe Mutuelle d’Assurance du Bâtiment et des Travaux Publics (SMABTP) and Mutuelle d'assurance des professionnels de la santé (MACSF).
Following the close of the transaction, the consortium is the majority shareholder of CCR Re, with a minority stake held by CCR Re’s parent company Caisse Centrale de Réassurance (CCR). The transaction includes further mechanisms for SMABTP and MACSF to acquire CCR’s remaining interest in CCR Re in 2026.
AM Best say the ratings reflect CCR Re’s balance sheet strength, which it assesses as “very strong”, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
CCR Re’s balance sheet strength assessment reflects its risk-adjusted capitalisation being at the “strongest level”, as measured by AM Best’s capital adequacy ratio.
SMABTP and MACSF will contribute an additional US$ 217 million (EUR 200 million) to CCR Re’s capital base in 2023. The assessment also factors in the company’s low dependence on reinsurance, conservative reserving practices and its liquid and good quality investment portfolio. CCR Re has most recently demonstrated its financial flexibility with the issuance of $326 million (EUR 300 million) of subordinated debt in 2020.
CCR Re has been profitable since its creation as a stand-alone company in 2016, with profits stemming from both underwriting and investments.
The company’s neutral business profile is supported by its established presence in the international reinsurance market, says AM Best. The company has a well-diversified underwriting portfolio and benefits from its long-established brand, the ratings company adds.
