Ceska is a fully owned subsidiary of Assicurazioni Generali S.p.A. (Generali), writing life and non-life insurance business in the Czech Republic. The ratings reflect Ceska's very strong business profile, excellent record of technical profitability and solid risk-adjusted capitalisation, and are derived from Ceska's strategic importance to the Generali group.
Ceska is the largest insurance company in Czech Republic, having an estimated 23% market share, and benefits from strong market positions in motor, commercial lines and life business. Ceska's leading position is underpinned by its excellent brand recognition and its solid agent network, which is its primary distribution method. The company has a well-diversified insurance portfolio, with gross premium written split between life (35%), motor (28%) and other non-life lines of business (37%) in 2015.
Ceska has maintained an excellent track record of technical profitability demonstrated by a five-year average (2011-2015) combined ratio of 86.4%. The company produced a return-on-equity of 16.8% in 2015, and is a consistent source of earnings for Generali.
Ceska's solid level of risk-adjusted capitalisation is supported by a low level of underwriting leverage and a relatively conservative investment portfolio that is focused on investment-grade fixed income investments.
Ceska's ratings also factor in the company's strong integration into Generali in terms of capital management, enterprise risk management, and reinsurance. The company is further considered as a key element of Generali's strategy in Central and Eastern Europe, one of the group's core markets. Read the full story CZECH REPUBLIC: A.M. Best Affirms Credit Ratings of Ceska pojistovna