AM Best [4] has affirmed the financial strength rating of B+ (good) and the long-term credit rating of bbb- of the Compagnie Centrale de Réassurance (CCR Algeria). The outlook for both ratings is stable.
The rating reflects the Algerian reinsurer's strong balance sheet, neutral business profile and marginal enterprise risk management.
According to the rating agency, the company's balance sheet is protected by a state guarantee covering business underwritten under the compulsory natural catastrophe insurance scheme. The company's balance sheet was also strengthened by a capital increase of 5 billion DZD (36.6 million USD) in 2022.
AM Best also praised CCR's strong operational performance. Over the past five years (2018-2022), the average combined ratio stood at 82% and the return on equity (ROE) at 13.9%.