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), based in Ireland.
According to A.M. Best, the ratings 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.
Unipol Re operates as a European third-party reinsurer, which operated as a group reinsurance captive until the end of 2014.
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 updated business strategy.
The company reported gross written premiums of €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.
A.M. Best said: “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.”
