Fitch Ratings has affirmed the “AA-” insurer financial strength (IFS) of Compagnie francaise d'assurance pour le commerce exterieur (Coface France), Coface North America Insurance Company, and Coface Re of Coface Group. The outlook of the ratings is stable.
According to the ratings agency, the affirmation “reflects Coface’s very strong business profile in credit insurance, very strong ‘capitalization and leverage,’ and profitability, although earnings were hit by adverse claims experience in 2016.”
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Fitch also noted the group's “strong franchise in credit insurance with a high level of geographical diversification,” which supports its solid business profile; as well as the group's robust risk management framework, reflected in “its modest multiple of nominal net credit exposure to equity and appropriate reserving” and “its Solvency II position.”
In 2016, Coface launched the strategic plan Fit to Win, which aimed at improving the company's financial performance over the next three years through three strategies – reinforcement management, improvement of operational efficiency, and prioritisation of value over growth. This plan was viewed by Fitch positively, as it expressed belief that “Coface is on track to achieve its 2019 targets.”
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