AM Best Affirms Credit Ratings of Occident GCO, S.A.U. de Seguros y Reaseguros
July 18 2024 - 11:42AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+”
(Excellent) of Occident GCO, S.A.U. de Seguros y Reaseguros
(Occident) (Spain). The company is a wholly owned subsidiary of
Grupo Catalana Occidente S.A. (GCO), the non-operating holding
company of the GCO group. The outlook of these Credit Ratings
(ratings) is stable.
The ratings of Occident reflect its balance sheet strength,
which AM Best assesses as very strong, as well as its strong
operating performance, neutral business profile and appropriate
enterprise risk management. The ratings also reflect ratings lift
from GCO, which reflects Occident’s strategic importance to the GCO
group, and the track record of financial and operational support
from GCO.
Occident’s risk-adjusted capitalisation was at the strongest
level at year-end 2023, as measured by Best’s Capital Adequacy
Ratio (BCAR). Additionally, the company’s balance sheet strength
assessment benefits from low reinsurance dependence, good liquidity
and the absence of external debt. A partially offsetting factor is
the company’s lack of financial flexibility on a stand-alone basis,
as capital is managed at the group level.
Occident has a track record of strong operating performance, as
evidenced by a five-year (2019-2023) weighted average
return-on-equity and combined ratios of 23% and 87%, respectively,
as calculated by AM Best, with balanced contributions from
technical and investment income. The company has maintained strong
and consistent underwriting performance across most non-life and
life business segments despite competitive market conditions in its
domestic market of Spain. Technical earnings are supported by the
company’s extensive agency network, which has been in place for a
number of years and allows it to manage the underwriting process
tightly.
Occident operates exclusively in Spain where it holds a top 10
position in several retail lines of business. The company benefits
from a solid and diversified franchise with an established presence
in all of Spain’s regions and the market’s distribution
channels.
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.
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Juan A. Villaescusa Prades Financial Analyst
+31 63 616 2585 juan.villaescusa@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Mathilde Jakobsen Senior Director, Analytics
+31 20 808 3118 mathilde.jakobsen@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com