Five years of strong and consistent profitability has led to an update for the second largest trade credit insurer
BALTIMORE - Moody’s Investors Service (“Moody’s”) today upgraded the Insurance Financial Strength (IFS) rating of Atradius and its operating subsidiaries to A2 from A3. In addition, Moody's has upgraded the backed subordinated notes issued by Atradius Finance B.V. to Baa3 (hyb) from Ba1(hyb).
The rating action reflects steady strengthening of Atradius's financial profile over the past five years, including strong and consistent profitability, strengthening capital adequacy and improvements in its risk management and reserving practices. In addition, Atradius has upheld its strong market position as the second largest global trade credit insurer, and continues to invest in defending and strengthening its market position.
In terms of profitability, Moody's stated that the group's combined ratio had remained consistently strong averaging approximately 79% over the past five years, in part driven by the strengthening of the Spanish economy, but also due to Atradius's improved cost efficiencies and stricter underwriting. Atradius was also able to avoid some of the recent losses that some of its peers experienced on their emerging markets exposures.
“It is extremely pleasing to see recognition of the hard work and dedication of our teams at all levels of the group. From sound capital, provisioning and reinsurance management at the top, to the efforts of our people on the ground. Our strong financial position makes Atradius an excellent risk partner and our unparalleled service makes us a first choice business partner,” said David Huey, President – Regional Director of Atradius Trade Credit Insurance, Inc.
