French insurers Prevoir Vie and Prevoir Risques Divers assigned 'A' IFS ratings
Fitch Ratings has assigned the French insurance companies Prevoir Vie and Prevoir Risques Divers Insurer Financial Strength ("IFS") 'A' ratings.
The agency has also assigned Societe Centrale Prevoir, the group's holding company, an IDR 'A-' (A minus). The Outlooks on all ratings are stable.
At the same time, Fitch has withdrawn the 'Aq' quantitative insurer financial strength (Q-IFS) ratings on Prevoir Vie and Prevoir Risques Divers as these companies no longer meet Fitch's criteria to be eligible to receive a Q-IFS rating.
The ratings reflect the Prevoir group's excellent capital adequacy, low risk profile and the quality and conservatism of its management, which is pursuing a consistent strategy. These are somewhat mitigated by the group's limited geographic and business diversification, leaving it vulnerable to potential industry-wide changes.
Fitch considers the group's capital adequacy to be excellent on a risk-adjusted basis. At end-2006 Prevoir Vie's (more than 90% of group premiums in 2006) capital base was 1.5x the regulatory minimum requirement, excluding unrealised gains (5.7x when including them). In addition, the quality of the group's investment portfolios is good.
Fitch expects the group to maintain its conservative management both in terms of underwriting policy and asset liability management, as both constitute important rating factors. Capital adequacy is forecasted to remain excellent on a risk-adjusted basis.
