OREANDA-NEWS. Fitch Ratings has assigned AXA Art Versicherung and AXA Art Insurance 'AA-' Insurer Financial Strength (IFS) ratings. The Outlooks are Stable.

KEY RATING DRIVERS
The 'AA-' IFS ratings reflect Fitch's view of AXA Art Versicherung's Core strategic status to AXA Konzern, notably supported by a profit and loss sharing agreement and intra-group reinsurance agreements. AXA Art Versicherung is a fully owned subsidiary of AXA Konzern, which itself is the top holding company of all AXA subsidiaries in Germany, 100% owned by AXA SA (IDR: A). The UK-based AXA Art Insurance is viewed by Fitch as a Core insurance subsidiary of AXA Art Versicherung and as such has been assigned the same rating.

The AXA Art business division is the group's dedicated unit for art insurance. Its strategy is fully aligned with group ambitions. Fitch expects the AXA group to provide additional financial support to the company, in case of need. Fitch does not expect the group to divest AXA Art Versicherung in the foreseeable future.

AXA Art Versicherung, domiciled in Germany, is a leading European insurer underwriting art insurance risks. It operates worldwide via branches and subsidiaries. In 2013, gross written premiums were EUR150m. Fitch views the company as being both profitable (reflected in its 89% average net combined ratio over the past three years) and strongly capitalised (406% of the regulatory capital requirement at end-2013).

The investment policy is highly conservative, mostly focusing on highly rated fixed income instruments and cash. In addition, AXA Art Versicherung has no financial debt on its balance sheet.

RATING SENSITIVITIES
Factors that could lead to a downgrade of AXA Art Versicherung and AXA Art Insurance include a downgrade of the AXA group rating or a change in their strategic position within the AXA group.

An upgrade of the AXA group rating could lead to an upgrade of AXA Art Versicherung and AXA Art Insurance.