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.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250701562283/en/
Contacts
James Kenfack Financial Analyst +31 20 808 2272 james.kenfack@ambest.com
Dr. Mathilde Jakobsen Senior Director, Analytics +31 20 808 3118 mathilde.jakobsen@ambest.com
Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 882 2318 al.slavin@ambest.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
9 hours ago
- Business Wire
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Certain Members of Health Care Service Corp Medicare & Supplemental Group Members
BUSINESS WIRE)-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a' (Excellent) of select members of Health Care Service Corp Medicare & Supplemental Group (HCSC Medicare & Supplemental Group) (Chicago, IL). At the same time, AM Best has removed from under review with developing implications and downgraded the Long-Term ICRs to 'a' (Excellent) from 'a+' (Excellent) and affirmed the FSRs of A (Excellent) of certain members of HCSC Medicare & Supplemental Group. The outlook assigned to all these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of companies and ratings.) The rating actions follow the completion of the acquisition by the parent organization, Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC), of all The Cigna Group's Medicare Advantage, Medicare Part D, Medicare Supplement and Care Allies businesses. The transaction closed earlier this year. As part of the transaction, HCSC is obtaining 30 legal entities, 13 of which are statutory legal insurance companies. These entities will be managed together under HCSC Medicare Holdings, a newly formed intermediate holding company. After discussions with company management regarding the planned operations, capitalization, projections and integration of these businesses, the financials of the rated legal entities in the group were consolidated under one uniform rating unit based on its combined financial strength assessments. The ratings reflect HCSC Medicare & Supplemental Group's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile, appropriate enterprise risk management (ERM) and the financial and operational support of its parent, HCSC. While capitalization had been pressured at a few of the legal entities, capital levels were bolstered as part of the final capitalization at sale, in line with the terms of the transaction. Additionally, HCSC has committed to fund additional capital throughout the course of 2025 as needed to support growth and additional projected acquisition related costs and operating losses. The 2024 Best's Capital Adequacy Ratio (BCAR) is at the strongest level but is expected to decline for a period of time during 2025 based on a combination of premium growth related to novated business at closing and additional incremental growth. Based on discussions with management, AM Best projects that this will be offset by capital contribution from HCSC as needed, and that the BCAR should improve to strongest again by year-end 2025. The balance sheet strength also reflects the sound consolidated absolute capital position of the group at approximately $2.7 billion, as well as its relatively modest underwriting leverage at 3.5 times and strong liquidity measures. Invested assets are conservatively allocated, held largely in investment grade fixed-income securities, and it is anticipated that the allocation will be similar under management by the parent going forward. The HCSC Medicare & Supplemental Group will contribute to net premium growth in core target markets for the organization, driven by membership growth across its suite of product offerings. This should help the broader organization offset attrition in its Medicaid line of business, as growth in the Medicare-related business is expected to continue. AM Best notes that consolidated underwriting and net income trends have been very challenged by changes to Medicare reimbursement and higher-than-expected medical cost trend, both of which are expected to continue in 2025. Management is focused on its star ratings and risk payment, as well as cost and expense management and efficiencies across its various Medicare Advantage plans as a part of improving future performance. Investment income has been steady and has meaningfully contributed to net earnings. The group's core offerings are Medicare Advantage, Medicare Part D and Medicare Supplement products, which are offered across numerous states that are outside of the parent's core market. The group has exhibited consistent historical membership growth in its main markets driven by government business, primarily Medicare Advantage, Medicare supplement and Medicare Part D, and other supplemental accident & health (A&H) offerings, which should complement and bolster its diversification. While competition remains strong in all lines of business, the new entities should help the organization continue to compete well and lift its market position. Given the Blue Cross Blue Shield businesses provide a significant competitive advantage in network relationships and consumer outreach, this should further help the expansion of these business lines. The ERM program will be integrated and managed at the ultimate parent level at HCSC, and it is well developed with a comprehensive risk identification, monitoring, mitigation and oversight process. Finally, these entities benefit from rating enhancement as part of the HCSC organization. They will be managed with a consolidated cost structure that management expects to lead to improved profitability and economies of scale and will expand HCSC's geographic presence and diversification with the addition of business. The new membership base and revenues will aid in providing additional scale and capabilities to HCSC's Medicare Advantage and supplemental health segments. The overall organization will grow financially through future revenue and operationally though a broader national footprint with deeper product penetration. These entities will also immediately contribute to HCSC's Medicare Advantage growth and market share, which has been a goal over the past few years. The FSR of A (Excellent) and the Long-Term ICRs of 'a' (Excellent) have been removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: HealthSpring Life & Health Insurance Company, Inc. Bravo Health Mid-Atlantic, Inc. Bravo Health Pennsylvania, Inc. HealthSpring of Florida, Inc. The Long-Term ICRs have removed from under review with developing implications and downgraded to 'a' (Excellent) from 'a+' (Excellent), and the FSR of A (Excellent) removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: Cigna National Health Insurance Company Medco Containment Life Insurance Company Loyal American Life Insurance Company Provident American Life and Health Insurance Company American Retirement Life Insurance Company Medco Containment Insurance Company of New York Cigna HealthCare of Colorado, Inc. 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
11 hours ago
- Business Wire
AM Best Affirms Credit Ratings of NLV Financial Corporation and Its Insurance Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior) of National Life Insurance Company (NLIC) (Montpelier, VT) and its wholly owned subsidiary, Life Insurance Company of the Southwest (LSW) (Addison, TX). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of 'a' (Excellent) of the surplus notes of NLIC. Both companies are collectively known as National Life Group (NL Group) and are life insurance subsidiaries of NLV Financial Corporation (NLVF) (headquartered in Montpelier, VT), which is the intermediate holding company in the organization's mutual holding company structure. AM Best also has affirmed the Long-Term ICR and the Long-Term IRs of 'a-' (Excellent) of NLVF. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs.) The ratings reflect NL Group's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). These ratings also indicate continued favorable trends in NL Group's balance sheet strength metrics, supported by its strongest level of risk-adjusted capitalization, which is projected to remain at that level, as measured by Best's Capital Adequacy Ratio (BCAR). Continued strategic management initiatives have resulted in further growth of the group's life/annuity sales, but sales for the industry could still be challenged to grow at a similar pace in the near term with economic uncertainty and its potential impact on the insurance industry's competitive landscape. NL Group's investment portfolio experienced some shifting during the year, with investment-grade corporate debt having the largest investment allocation decline, while mortgage-backed securities (MBSs) composed the biggest relative increase in investment allocation. NL Group's NAIC risk-based capital ratio remains strong and has stayed well above regulatory requirements over the past several years. However, there has been moderate continued volatility in NL Group's net income levels, driven by non-core earnings that reflect GAAP accounting reserving changes for indexed products, as well as short-term movement in equity markets and interest-rate curves. NL Group has a long history of successfully growing its agency force consisting of career and independent agents targeting life insurance and annuity product solutions. Recent profitable growth has led to consistent improvement in market share position through its niche products, such as its offerings in the K-12 educator and indexed universal life markets. Although the ERM assessment is assessed as appropriate, the program continues to positively reflect NL Group's well-established governance structure, culture and risk management controls, which are continuing to evolve and grow more sophisticated year over year. Additionally, NL Group launched a funding agreement-backed note (FABN) program in 2024, which completed its first issuance of $500 million in January 2025. The FABN program acts as a natural extension of the FHLB program, which leverages internal investments and finance expertise to contribute meaningfully to NL Group's bottom line. Most recently, NL Group recaptured all the assets of its captive reinsurer, Longhorn Reinsurance Company, resulting in a $19 million increase in assets in December 2024. AM Best will closely monitor the effects of these transactions on the whole organization. The following Long-Term IRs have been affirmed with stable outlooks: NLV Financial Corporation— -- 'a-' (Excellent) on $75 million 6.50% senior unsecured notes, due 2035 -- 'a-' (Excellent) on $200 million 7.50% senior unsecured notes, due 2033 National Life Insurance Company— -- 'a' (Excellent) on $200 million 10.50% surplus notes, due 2039 -- 'a' (Excellent) on $500 million 5.25% surplus notes, due 2068 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
12 hours ago
- Business Wire
AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Blue Cross and Blue Shield of Vermont and Its Subsidiary
BUSINESS WIRE)-- AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of 'b+' (Marginal) of Blue Cross and Blue Shield of Vermont (BCBSVT) and its subsidiary, The Vermont Health Plan, LLC, collectively known as Blue Cross and Blue Shield of VT Group (BCBSVT Group). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICRs is negative. The Credit Ratings (ratings) reflect BCBSVT Group's balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The negative outlook assigned to the Long-Term ICRs reflects AM Best's concern regarding the continued pressure on BCBSVT Group's balance sheet strength driven by very weak risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and deteriorating balance sheet strength metrics due to sizable operating losses through 2024. BCBSVT Group's balance sheet strength remains challenged due to the group's level of capital, both absolute and risk-adjusted, which has declined over the past few years. BCBSVT's capital and surplus was supported in late 2024 with a surplus note issued by Blue Cross Blue Shield of Michigan Mutual Insurance Company, an affiliated company. Even with the surplus note, the company remains under a capital restoration plan by Vermont's Department of Financial Regulation. As a result of the surplus note, the overall quality of capital has declined, as over 50% of capital is in the form of a surplus note. Additionally, liquidity metrics have had a declining trend from 2020 to 2024, driven by poor underwriting performance. BCBSVT Group has reported underwriting losses in four out of the past five years driven by higher utilization, as well as medical and pharmacy costs, which have been higher than expected. All insured segments were impacted negatively by higher medical and pharmacy claim trends in 2024. The company is focused on improving underwriting profitability via rate increases and other initiatives that should lead ultimately to an increase in its capital position. The limited business profile reflects the challenging regulatory environment in Vermont, with the Department of Financial Regulation overseeing regulatory capital while the Vermont Green Mountain Care Board has oversight on rate increases. The objectives of the two regulatory authorities have a history of not being aligned, which historically has hindered BCBSVT Group's ability to obtain requested rate increases. BCBSVT Group maintains a large market share in Vermont, where a large majority of businesses are small in scale, and maintains a large presence in the Affordable Care Act marketplace. However, the group faces limited competition in these markets due to few companies participating. 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.
