S&P revises Achmea to negative

S&P said it revised its outlook on Achmea BV and its subsidiaries to negative from stable.

At the same time, the agency affirmed its A counterparty credit and insurer financial strength ratings on the group's core operating subsidiaries, the A- financial strength rating on Achmea Reinsurance Co. NV and Achmea Bank NV and the BBB+ counterparty credit rating on Achmea.

S&P said the negative outlook reflects its concerns over Achmea's ability to rebuild its financial risk profile following multiple one-off losses.

“The expected loss of about €380 million is materially below our forecasts and evidences Achmea's weakening and more volatile operating performance in recent years. Specifically, we see a risk that earnings may not recover sufficiently to reduce the pressure on the group's fixed-charge coverage and could materially weaken the group's capital adequacy,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.