A.M. Best Co. announced that it has upgraded the financial strength ratings to “A” (Excellent) from “A-” (Excellent) of Groupama Vie and Groupama Transport. Both companyies are operating subsidiaries of French insurer Groupama S.A. Best also upgraded its issuer credit ratings on the two companies to “a” from “a-“. The outlook on all the ratings is stable.
“These actions, at the time of the publication of Group results in line with A.M. Best expectations, reflect A.M. Best’s review of the role each of these subsidiaries plays within the Groupama group after factoring the synergies achieved since the reorganisation of the group in December 2003, including the improving performance of Groupama Vie (See Rating Members of Insurance Groups at http://www.ambest.com/ratings/membergroups.pdf.),” said the announcement.
Best said it “regards Groupama Vie and Groupama Transport as integral parts of Groupama’s strategy and operations, sharing distribution channels, management and back office administration. Groupama Vie accounts for a significant contribution to the 2004 consolidated earnings, which increased 11.2 percent to EUR 77 million (USD 105 million), while Groupama Transport benefits from explicit support from Groupama in the form of a guarantee.”
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