Euler Hermes : A.M. Best affirms Solunion’s Financial Strength Rating as A- with a stable outlook

The international insurance ratings agency A.M. Best has affirmed Solunion's Financial Strength Rating as A- (Excellent) and its Long-Term Issuer Credit Rating of 'a-'. The outlook of these credit ratings is stable.

In its 2017 report, A.M. Best determined that Solunion, 'maintains excellent consolidated risk-adjusted capitalization, with significant capital buffers to cushion against the effects of a heightened insolvency environment, owing to its large capital base and low net underwriting strategy'.

'Once again, A.M. Best has affirmed that Solunion is a well-capitalized and strong business with a promising outlook for future growth,' commented Fernando Pérez-Serrabona, CEO of Solunion. 'This is excellent news for our business and is a welcome validation of our strategy. We are firmly focused on increasing our range of products and services, our capacity as well as excellence of delivery to ensure we provide first-class service and the most appropriate and effective tools and solutions for our customers.'

A.M. Best also noted that Solunion, 'employs a prudent reserving approach, and conservative investment and reinsurance strategies to support its strong balance sheet.' Furthermore, the ratings agency expects Solunion, will 'maintain a prudent capital management strategy to support its expansion plans'.

The report also noted that the ratings reflect 'Solunion's strategic importance to its joint shareholders as their exclusive writer of trade credit insurance business in Spain and Latin America (excluding Brazil)'.

A.M. Best expects Solunion's prospective profitability to be supported by better economic conditions in Spain, a continued cautious expansion into new markets, as well as improved quality of the underwriting portfolio, supported by Euler Hermes' robust risk underwriting framework.