AM Best Affirms Credit Ratings of Greenval Insurance Designated Activity Company
The ratings reflect Greenval's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Greenval is the captive motor insurer for Arval Service Lease SA (Arval), a vehicle-leasing company wholly owned by BNP Paribas SA, a global banking group headquartered in France.
Greenval's balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the very strong level at year-end 2024, as measured by Best's Capital Adequacy Ratio (BCAR). The company's risk-adjusted capitalisation is expected to remain at least at the strong level prospectively. The balance sheet strength assessment also considers the company's prudent reserving, appropriate reinsurance programme and liquid investment portfolio.
Greenval has a track record of a strong operating performance, as demonstrated by a return on capital and surplus of 36.3% and a combined ratio (net/gross) of 84.4% in 2024 under IFRS 17. Underwriting results have been consistently strong, benefiting from the captive's privileged access to Arval's good quality business.
As a captive insurer providing motor insurance covers for Arval, Greenval's underwriting portfolio is concentrated in motor insurance, but well-diversified geographically. Greenval's neutral business profile assessment also reflects its strategic importance to Arval, as its only affiliated motor insurer.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
www.ambest.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
42 minutes ago
- Business Wire
AM Best Affirms Credit Ratings of Trisura Group Ltd. Members
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of 'a-' (Excellent) of Trisura Specialty Insurance Company (TSIC), Trisura Insurance Company (TIC), Bricktown Specialty Insurance Company (BSIC) and Trisura Guarantee Insurance Company (TGIC). Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of 'a-' (Excellent) of First Founders Assurance Company (FFAC) (Chester, NJ). The aforementioned companies are subsidiaries of Trisura Group Ltd. (TGL) [TSX: TSU] (Toronto, Ontario, Canada), a non-operating holding company. TSIC, TIC, and BSIC are domiciled in Oklahoma City, OK, while TGIC is domiciled in Toronto, Ontario, Canada. The outlook of these Credit Ratings (ratings) is stable. The ratings reflect TGL's overall balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings acknowledge improvement in TGL's overall balance sheet strength assessment, supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Additionally, the group's capital base has grown significantly over the recent five-year period, driven by several public capital raises and very strong earnings growth, which more than tripled in the recent three-year period. This growth in equity has supported the group's overall growth and its expansion into the admitted U.S. market. While underwriting leverage was previously elevated due to an accelerated growth period, recent moderation in premium growth, combined with capital expansion, has resulted in leverage metrics that closely align with industry norms. Financial flexibility is strong with moderate levels of debt and very strong interest coverage. TGL's operating performance benefits from the diversification in its earnings from fronting fee income, underwriting income and investment income and its business profile recognizes the diversification afforded by its diversified North American footprint, providing specialty insurance in the surety, warranty, corporate insurance, program and fronting business lines. The ratings of FFAC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings acknowledge the significant capital and operational support FFAC receives from TGL and its strategic importance to TGL's U.S. surety operations. In the second quarter of 2024, TGL contributed approximately USD $55 million of capital to FFAC. Furthermore, TGL seeks to continue to expand FFAC's licensing to all 50 states. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
10 hours ago
- Business Wire
Best's Commentary: Latest Middle East Turmoil Generates Additional, Familiar Exposures for Insurers; Regional Economy May Feel the Broader Brunt
BUSINESS WIRE)--While the most recent period of military action in the Middle East presents a range of potential geopolitical risk exposure for the insurance industry, the direct impacts will largely be limited by war exclusions and narrowly defined policy triggers, according to a new AM Best report. The Best's Commentary, titled 'Latest Middle East Turmoil Generates Additional, Familiar Exposures for Insurers; Regional Economy May Feel the Broader Brunt,' notes that thus far, there has been no ratings impact for AM Best-rated insurers operating in the region. If tensions escalate, there is a potential impact for insurers who underwrite political risk, trade credit and war risk coverages in the Middle East region. 'Disputes over exclusions may arise from ambiguous policy language, particularly in relation to business interruption claims, where coverage and causality may be contested,' said Mahesh Mistry, senior director, AM Best. 'For example, port closures, logistical delays, and production halts could potentially trigger business interruption claims.' AM Best also notes in the report that a significant impact is evident in the aviation and marine insurance specialty markets. Premiums for ships operating in the Persian Gulf region, particularly through the Strait of Hormuz, have risen sharply to reflect the elevated risk. Aviation insurers have similarly raised rates for carriers flying near the conflict zones. Many countries in the Gulf Cooperation Council (GCC) region are heavily reliant upon the hydrocarbon sector to drive economic growth, according to the report. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. AM Best maintained its stable outlook on the GCC in April, but notes that this region could be adversely impacted by second-order effects. 'If events were to escalate and impact energy prices, it is likely to affect opportunities for insurers in the region,' said Ann Modica, director, AM Best. 'Any wider escalation into the GCC region could affect energy prices, and may have repercussions for inflation globally.' To access the full copy of the Best's Commentary on the Middle East, please visit
Associated Press
a day ago
- Associated Press
AM Best Upgrades Credit Ratings of National Guaranty Insurance Company of Vermont
OLDWICK, N.J.--(BUSINESS WIRE)--Jul 2, 2025-- AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to 'a' (Excellent) from 'a-' (Excellent) of National Guaranty Insurance Company of Vermont (NGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect NGIC's balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating upgrades reflect a revision of NGIC's operating performance assessment to very strong from strong. Over the last decade, NGIC has produced consistently strong underwriting and return on revenue metrics, with combined ratios that outperformed the industry and its peers by wide margins. It is AM Best's expectation that NGIC will continue to produce favorable operating results prospectively, driven by the organization's extensive loss controls, which have resulted in a loss-free history for the captive. The ratings also acknowledge NGIC's strategic role as the captive insurance company of Waste Management, Inc. (WM) [NYSE: WM], one of the leading providers of comprehensive waste management environmental services in North America. As a strategic and integral part of WM's ERM program, it wholly funded the captive's capitalization in the form of a demand note, and as changes in exposures necessitate, additional supplements have been provided in the form of letters of credit. Furthermore, NGIC benefits from WM's robust risk management strategies, which enable it to support a portion of WM's financial assurance program efficiently and appropriately. NGIC has a limited business profile, is licensed in two states and operates in 27 states as a non-admitted insurer to meet financial assurance obligations of WM. The captive's ERM is considered appropriate as a focused insurance company, which leverages its expertise to benefit policyholders. The stable outlook reflects AM Best's expectation that NGIC will sustain its current level of operating profitability and continue to outperform peers while maintaining its very strong balance sheet strength assessment. AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best'sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please viewGuide to Proper Use of Best's Ratings & © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on CONTACT: Sebastian Caballero Financial Analyst +1 908 882 1680 [email protected] Adrienne Stark Associate Director +1 908 882 2336 [email protected] Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Al Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE SOURCE: AM Best Copyright Business Wire 2025. PUB: 07/02/2025 11:11 AM/DISC: 07/02/2025 11:11 AM
