Standard and Poor’s has removed it’s ‘AA-‘ rating on France-based insurance group Euler Hermes, after the group restructured. In the move, the company merged 13 subsidiaries into its Belgian operating entity, Euler Hermes Europe.
The specific ratings that were withdrawn were the long-term counterparty credit, and insurer financial strength ratings. All of the ratings were on negative watch before their withdrawal.
The ratings and outlook on the Belgian operating entity Euler Hermes Europe remain unchanged.
Euler Humes underwent restructuring late last year to try and ‘streamline its legal structure’. To do this they merged 13 subsidiaries into its main operating entity based in Belgium, Euler Hermes Europe, including the trade credit insurers Euler Hermes Kredietverzekering, Euler Hermes SIAC, and Euler Hermes U.K. The legal change took effect on Dec. 31 and these three former subsidiaries are now branches under Euler Hermes Europe.
Euler Hermes Kredietverzekering, Euler Hermes SIAC, and Euler Hermes U.K. together represent the trade credit insurance business of the Euler Hermes group, reporting premium volumes of €41.8 million, €148 million, and €150 million respectively on Sept. 30, 2011.
