LONDON--(BUSINESS WIRE)--Sep 5, 2018--A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” of Compagnie Centrale de Réassurance (CCR Algeria) (Algeria). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CCR Algeria’s balance sheet strength, which A.M. Best categorises as very strong, as well as the company’s strong operating performance, neutral business profile and marginal enterprise risk management.

CCR Algeria’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by relatively low underwriting leverage and good internal capital generation. The company manages its potential peak exposures to large losses through a comprehensive retrocession protection, and benefits from a state guarantee for its cover of Algeria’s natural catastrophes. Offsetting rating factors to the balance sheet strength assessment include moderate dependence on retrocession, and significant exposure to the high financial system risk in Algeria, with over 95% of assets invested domestically.

Whilst CCR Algeria has experienced sustained growth, with gross written premium having increased by approximately 45% over the past five years, its operating performance has remained strong, supported by solid technical profitability and stable investment returns. The company reported a five-year (2013-2017) weighted average combined ratio of 79.1% and return on equity of 10.1%. Despite gross claims increasing by 60% in 2017, driven by both higher frequency and severity of events, CCR Algeria’s net loss ratio remained stable at 51.3%, reflecting the effectiveness of its retrocession programme.

CCR Algeria’s business profile assessment takes into account its leading domestic market position as the national reinsurer with an estimated market share of 68% in 2017, as measured by ceded premium volumes. As a state-owned company, CCR Algeria benefits from compulsory cessions and manages various national schemes, including the domestic natural catastrophe programme. Despite growth in its international portfolio over recent years, CCR Algeria’s business profile remains heavily concentrated in Algeria, where the company originated 87.3% of its business in 2017. This, together with significant exposure to domestic investments, makes CCR Algeria dependent on the macro-economic and political conditions prevailing in Algeria.

This press release relates to Credit Ratings 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 see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on


Charlotte Vigier, +44 20 7397 0270

Senior Financial Analyst


Ghislain Le Cam, CFA, FRM, +44 20 7397 0268

Director, Analytics


Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations


Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations




Copyright Business Wire 2018.

PUB: 09/05/2018 04:56 PM/DISC: 09/05/2018 04:56 PM