A.M. Best Removes From Under Review and Affirms Ratings of Schweizerische National-Versicherungs-Gesellschaft AG

A.M. Best has removed from under review with positive implications and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Schweizerische National-Versicherungs-Gesellschaft AG (Nationale Suisse) (Switzerland). The outlook assigned to both ratings is stable.

The rating actions follow the close of Nationale Suisse’s acquisition by Helvetia Holding AG (Helvetia) in October 2014 and subsequent discussions with both companies’ management teams. Contrary to initial expectations, all of National Suisse’s operating units are to be fully integrated into Helvetia, with the majority of them likely to be merged over the short to medium term.

Nationale Suisse is anticipated to report another year of solid earnings in 2014, with a combined ratio of approximately 90%, supported by its well-performing domestic non-life segment. Some of its foreign subsidiaries, such as those based in Belgium and Italy, continue to be loss-making as a result of restructuring activities. Risk-adjusted capitalisation is anticipated to remain strong until Nationale Suisse’s dissolution.

Currently there is no anticipated positive rating movement. However, a significant deterioration in Nationale Suisse’s risk-adjusted capitalisation in the coming months could have a negative impact on the ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilised:

• Catastrophe Analysis in A.M. Best Ratings
• Equity Credit for Hybrid Securities
• Insurance Holding Company and Debt Ratings
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• Understanding Universal BCAR

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.