AM Best has affirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of Ireland-domiciled Greenval Insurance Company Designated Activity Company. The outlook for the ratings is stable.
Greenval is the captive insurer for Arval Service Lease S.A., a vehicle-leasing company wholly owned by BNP Paribas SA, a global banking group headquartered in France.
Greenval’s underwriting portfolio is concentrated in motor insurance, but is well-diversified geographically.
The captive’s neutral business profile assessment also reflects its strategic importance to Arval, as its only affiliated motor insurer.
The ratings reflect Greenval’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Greenval’s ERM is considered developed and appropriate for its risk profile and operational scope.
The captive has a track record of a strong operating performance, as demonstrated by a return on equity (ROE) of 42.4% in 2023 under IFRS 17 and a five-year weighted average ROE of 40.4% for the period 2018-2022 under IFRS 4.
“Underwriting results have been consistently strong, benefiting from the captive’s access to Arval’s good quality business,” AM Best said.