Cesce maintains its S&P Global rating at A-, and raises the outlook from stable to positive

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S&P Global highlights the solid results obtained by the insurer in 2022, the growth in premiums and income in the State account, as well as the improvement in the combined ratio.

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Standard and Poor's (S&P Global) has made public the rating report of Cesce. It maintains its rating at A-, but raises the outlook from stable to positive. As part of this recognition, which is the previous and essential step to continue improving its rating, S&P Global highlights the solid results obtained by the insurer in 2022, the growth in premiums and income in the State account, as well as the improvement of the combined ratio.

Furthermore, among the main strengths attributed to Cesce, The risk rating agency expects its profits to continue to be better than before the pandemic, despite the current international macroeconomic risks.

Amid the current complex economic environment, S&P Global highlights in its final conclusions that Cesce will maintain excellent capital adequacy over the next 12 to 24 months

Specifically, the report assesses the net profit that Cesce achieved last year, 72 million euros, driven by a growth in premiums of 14% and an increase in income on behalf of the State of 39%. The combined ratio (claims plus expenses) was low, 62,5% in 2022, due to specific effects related to extremely low frequency claims. Now, S&P's own forecasts predict that the combined ratio will increase to around 90% in 2023-2024 on average, due to a higher frequency of claims, but will remain below the three-year average of 96% in 2017-2019. In their forecast they state that growth will remain contained at around 2,5% annually. on average due to the highly competitive environment, but operating results will be better than before the pandemic, with a return on equity of 7,5%-8,0% during 2023-2024.

In the midst of the current complex economic environment, S&P Global highlights in its final conclusions that Cesce will maintain excellent capital adequacy over the next 12 to 24 months. The company's solvency strength stands out to face market volatility and a potential increase in claims. Likewise, the risk rating agency highlights that the insurance company is a leading company in the Spanish market within its sector, and expects it to maintain its competitive strength in the coming years.

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Cesce maintains its rating in the S&P Global rating at A-, and raises the outlook from stable to positive

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Report

Any questions about this news?

International business service providers

Moldtrans

FedEx Express

AROLA

Pantoja Logistics Group

DHL Express

Other news of interest

The new European packaging regulations redefine the concept of 'producer' and require companies to review their obligations

Maersk raises its profit forecast and exposes structural strain on supply chains

Óscar Puente oversees the final stages of construction on the new intermodal station in Almería, a key infrastructure project for high-speed rail.

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