A.M. Best has affirmed the financial strength rating of A+ (superior) and the long-term issuer credit rating of “aa-” of AXA Global Re (AGRe).
The ratings reflect AGRe’s balance sheet strength, which A.M. Best categorises as “adequate”, as well as its “adequate” operating performance, neutral business profile and very strong enterprise risk management.
The ratings also reflect AGRe’s strategic importance to AXA S.A. (AXA), with AGRe benefitting from rating enhancement as a result.
AGRe’s balance sheet strength assessment is underpinned by a strong risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), after adjustments are made for the credit risk stemming from the company’s role as AXA’s main purchaser of external reinsurance.
AGRe’s neutral business profile assessment is supported by its key role as AXA’s captive reinsurance vehicle.
While the company writes no third party business, A.M. Best suggested its role is considered integral to AXA’s risk management framework as a tool to optimise its capital resources through internal risk transfer and securing external reinsurance placements for all business segments.
AGRe’s ERM is assessed as “very strong”, reflecting its integration within AXA’s ERM framework.
Given the company’s strategic importance, A.M. Best said it expects “prompt and sufficient support from the parent should the need arise”.
