S&P lifts Achmea view to stable

S&P said it revised the outlook on the Achmea group to stable from negative and affirming the BBB+ ratings on Achmea BV, along with the A- ratings on subsidiaries Achmea Reinsurance Co. NV and Achmea Bank NV and A ratings on the group's core operating companies.

The outlook revision reflects a belief that the group will sustain improvements in operating performance and fixed-charge coverage, while maintaining capital in excess of the A level, S&P said.

The agency said it believes Achmea has taken corrective measures, like premium rate increases, revisions of its reinsurance program to reduce retention levels, better claims management and cost saving initiatives to reduce its capital and earnings volatility.

Despite indirect political pressure and intense competition in the health business, additional loss provisions declined substantially to €21 million in 2018 and €108 million in 2017, compared with on average €400 million annually in the three years before 2017, S&P said.

This has reduced capital and earnings volatility and will continue to do so, the agency said.

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