AM Best Affirms Coface's Subsidiaries Rating at A (Excellent)

The rating agency AM Best affirmed on May 19, 2023 the A (Excellent) Insurer Financial Strength (IFS) rating of Compagnie française d’assurance pour le commerce extérieur (la Compagnie), Coface North America Insurance Company (CNAIC), and Coface Re. The outlook for these ratings remains “stable”.

In its press release, AM Best highlights that this rating reflects “Coface group’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, favourable business profile, and appropriate enterprise risk management”.

This strength is underpinned by a consolidated risk-adjusted capitalization at the strongest level, as measured by the Best’s Capital Adequacy Ratio (BCAR) score.

AM Best also believes that “the group’s prospective performance may be subject to volatility, driven by the uncertain global operating environment. However, the group is able to take prompt risk-mitigating actions against non-performing businesses when required”.

In its release, the rating agency underscores that this note reflects Coface’s “leading position in the global credit insurance market, which is characterised by high barriers to entry”.