Standard & Poor’s Ratings Services announced that it has raised its long-term counterparty credit and insurer financial strength ratings on Belgian reinsurer Secura N.V. to “A+” from “A-” with a stable outlook.
“The upgrade reflects the provision of a strengthened guarantee to Secura from parent company KBC Insurance N.V.,” stated S&P credit analyst Virginie Crepy. The guarantee relates to all current and future reinsurance contracts issued by Secura, and caps the ratings on Secura at “A+.”
S&P said: “The ratings on Secura continue to reflect primarily an explicit guarantee agreement, which meets all of Standard & Poor’s relevant criteria. It is highly unlikely that the guarantee would be terminated. The most likely termination scenario is that Secura is either sold or integrated into another group or entity, which could subsequently lead to a rating of ‘A+’ or higher.”
The stable outlook reflects that on KBC Insurance. “We expect that KBC will retain its shareholding in Secura in the medium term,” Crepy concluded.
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