AM Best cites strong capitalisation and orderly run off of claims reserves
AM Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of AXA Re (France). Subsequently, AM Best has withdrawn the ratings and assigned a category NR-4 (Company Request).
The ratings reflect the company’s strong capitalisation and the AXA SA (AXA Re’s ultimate parent company) joint guarantee with AXA Re on the reserves prior to 1 January 2006, which were ceded to Paris Re (France).
Following the cession of its business to Paris Re in December 2006, AXA Re transferred the vast majority of its reserves to Paris Re through a quota share agreement. AXA Re was acting as a fronting company to Paris Re from the cession date until the end of September 2007. AXA Reinsurance UK Plc and AXA Re Finance, both of which are run-off companies, remain subsidiaries of AXA Re.
AM Best expects AXA Re to remain adequately capitalised and to continue the orderly run off of its existing claims reserves. The reserves prior to 1 January 2006 are jointly guaranteed by AXA S.A. and AXA Re, and the reserves since 1 January 2006 are ceded to Paris Re through a quota share agreement.