AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Greenval Insurance Company Designated Activity Company (Greenval) (Ireland). The outlook of these Credit Ratings (ratings) is stable.

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 is the captive motor insurer for Arval Service Lease S.A. (Arval), a vehicle-leasing company wholly owned by BNP Paribas SA, a global banking group headquartered in France.

Greenval’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strong level at year-end 2023, as measured by Best’s Capital Adequacy Ratio (BCAR). BCAR scores were supportive of the very strong assessment at year-end 2022, and decreased in 2023, mainly as a result of an increase in underwriting risk tied to the company's significant growth. Risk-adjusted capitalisation is expected to remain at least at the strong level prospectively. The balance sheet strength assessment considers the company’s prudent reserving, appropriate reinsurance programme and liquid investment portfolio.

Greenval 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 privileged access to Arval’s good quality business.

As a captive insurer providing motor insurance covers for Arval, Greenval’s underwriting portfolio is concentrated in motor insurance, but well-diversified geographically. Greenval’s neutral business profile assessment also reflects its strategic importance to Arval, as its only affiliated motor insurer. Greenval’s ERM is considered developed and appropriate for its risk profile and operational scope.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

James Kenfack Associate Financial Analyst +31 20 808 2272 james.kenfack@ambest.com

Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com

Dr. Mathilde Jakobsen Senior Director, Analytics +31 20 808 3118 mathilde.jakobsen@ambest.com

Al Slavin Senior Public Relations Specialist +1 908 822 2318 al.slavin@ambest.com