N.V. Univé Her maintains excellent financial strength rating from AM Best

In the Netherlands, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' (Excellent) for N.V. Univé Her, a wholly owned subsidiary of Coöperatie Univé U.A., on May 23, 2025. The outlook for these ratings is stable, reflecting the company's very strong balance sheet strength alongside its adequate operating performance and neutral business profile. These ratings underscore Univé Her's strategic significance within the Univé Group as an internal reinsurance vehicle, benefitting from a thoughtful risk management strategy and overall organizational integration. Univé Her's balance sheet fortitude is underpinned by its risk-adjusted capitalisation, which has remained at the highest level as assessed by Best’s Capital Adequacy Ratio (BCAR). However, as the company has significant exposure to catastrophe losses, the prospective risk-adjusted capitalisation could experience volatility. An important consideration is Univé Her's reliance on retrocession, which aids in managing its natural catastrophe risks; the affiliation with high credit quality counterparties mitigates the risk here to an extent. The consistency in operational earnings is bolstered by modest investment returns from the company's conservative investment portfolio, Through its underwriting results, Univé Her has demonstrated solid performance, achieving an average combined ratio of 74.5% over the past five years (2020-2024). In 2024, the company reported after-tax profits reaching EUR 9.2 million, a significant increase from EUR 3.5 million in 2023, primarily attributed to a combined ratio of 48.8%. This improvement follows a lighter impact from natural catastrophe events compared to the previous year, leading to a more stable financial position for the company. The company operates with a highly specialized role within the Univé Group, functioning as the primary reinsurer. Its access to exclusive reinsurance business from the Univé mutuals and N.V. Univé Schade enhances its competitive standing in the market. This publication serves as a critical update regarding the company's credit ratings and reflects the company's stability in a challenging economic environment.