AM Best has affirmed the Financial Strength Rating of ‘A-’ (Excellent) and long-term issuer credit rating of ‘a-’ (Excellent) for Greenval Insurance Designated Activity Company with a ‘stable’ outlook. The Ireland-based captive serves as the motor insurer for Arval Service Lease, the vehicle-leasing subsidiary of BNP Paribas. AM Best says the ratings reflect strong balance sheet strength, operating performance, neutral business profile and appropriate enterprise risk management. Greenval's balance sheet strength is underpinned by very strong risk-adjusted capitalisation at year-end 2024, as measured by Best's capital adequacy ratio. The assessment considers prudent reserving, appropriate reinsurance programmes, and a liquid investment portfolio. The captive demonstrated strong operating performance in 2024, with a return on capital and surplus of 36.3 per cent and a combined ratio of 84.4 per cent under IFRS 17. Underwriting results have remained consistently strong, benefiting from privileged access to Arval's quality business. The captive's underwriting portfolio concentrates on motor insurance but maintains geographical diversification across Arval's operations. AM Best noted Greenval's strategic importance to Arval as its only affiliated motor insurer, reflecting the captive's integral role in the parent company's risk management strategy. The stable outlook indicates AM Best expects Greenval to maintain strong capitalisation and operating performance whilst continuing to serve Arval's motor insurance requirements effectively. The ratings affirm the captive model's viability for large-scale motor fleet exposures under appropriate governance structures.
