Fitch Ratings has given a BBB+ insurer financial strength rating to China's Groupama SDIG Property Insurance, reflecting its stable capitalization, better underwriting results, and niche focus on agricultural insurance.
Fitch also views the insurer as an "important" strategic unit for Groupama Assurances Mutuelles, according to a Thursday release.
Fitch sees the insurer's capitalization as "strong," as its comprehensive solvency ratio rose to 340% by H1 from 313% in 2023, which was way above the 180% benchmark to carry out its agricultural insurance segment.
The company's financial performance is "good," Fitch said, citing a rising underwriting margin and stable investment yield.
The insurer also has a "moderate" company profile, reflecting its niche business focus, moderate operating scale, sound business risk profile, and somewhat diversified geographical coverage, Fitch said.
Changes in Fitch's view of the company's importance to its parent as well as notable shifts in its capitalization levels and operating performance would result in future rating actions.
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