AM Best assigns ratings to Unipol Re

Rating agency AM Best has assigned ratings to Unipol Re, the reinsurer recently launched by UnipolSai Assicurazioni.

AM Best assigned the reinsurer, which will target property and casualty business in continental Europe, a financial strength rating of A- (Excellent) and an issuer credit rating of ‘a-’. The outlook assigned to both ratings is stable.

This follows the decision by the directors of UnipolSai and UnipolRe to change UnipolRe’s business operations from a group reinsurance captive to a third-party reinsurer.

“The ratings reflect the company’s excellent risk-adjusted capitalisation and good prospective operating performance. In addition, the ratings are reflective of UnipolRe’s strategic importance to UnipolSai,” said the rating agency.

AM Best added: “UnipolRe has been operating as a group reinsurance captive since 1998 and has been able to build up its capital and surplus over the past several years. It has an excellent level of risk-adjusted capitalisation, which is forecast to continue in 2015 and subsequently, as the company establishes itself as a European third-party reinsurer.”

Based in Dublin, Ireland, UnipolRe has assets of more than €500 million and will offer tailored reinsurance coverage to small and medium-sized insurance companies throughout continental Europe for a number of risks including third party liability business.

This is UnipolSai Assicurazioni’s first venture into the reinsurance market and the first time it has launched its brand outside its home market of Italy.