A.M. Best Europe has affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” of Casiopea Re, the reinsurance captive of Telefónica.
Casiopea Re’s ratings reflect its strong risk-adjusted capitalisation, which is underpinned by a comprehensive retrocession programme, as well as a good, albeit relatively volatile, financial performance.
Offsetting factors are the weaker domestic position of its parent company, Telefónica, which operates in a challenging macroeconomic environment and also has a high debt position.
“Casiopea Re's risk-adjusted capitalisation is expected to remain very strong over the next two years benefiting from a comprehensive retrocession programme that provides good protection to its balance sheet,” said A.M. Best.
