June 7, 2012 / 9:21 AM / in 6 years

TEXT-S&P rates Netherlands-Based Blue Square Re 'AA-'

(The following statement was released by the rating agency)

June 07 -


-- We are assigning ‘AA-’ ratings to Netherlands-based reinsurer Blue Square Re N.V.

-- The ratings reflect our view that Blue Square Re is “core” to the AEGON group owing to its position as an internal reinsurer.

-- The stable outlook reflects that on other core entities of the AEGON group.

Rating Action

On June 7, 2012, Standard & Poor’s Ratings Services assigned its ‘AA-’ long-term counterparty credit and insurer financial strength ratings to Netherlands-based reinsurer Blue Square Re N.V. The outlook is stable.


The ratings on Blue Square Re reflect our view of the company as a “core” entity in the AEGON group, into which we consider Blue Square Re to be significantly integrated. We understand that Blue Square Re’s strategy is to accept risk from other parts of the AEGON group, either to enable greater retention of risk or to allow pooling of risk before it is ceded. We consider this to be consistent with the AEGON group strategy of focusing more on underwriting risk.

The ratings on Blue Square Re also reflect the company’s position as an internal reinsurer, and that Blue Square Re does not intend to offer reinsurance outside the AEGON group. Nonetheless, we consider Blue Square Re to be small compared with the rest of the AEGON group (Blue Square Re had shareholders’ equity of EUR24 million as at year-end 2011, compared with EUR21,000 million for the AEGON group at year-end 2011).

We consider Blue Square Re to be comfortably capitalized, and note that it conducts its capital management in a manner that is consistent with AEGON group policies. We also consider that Blue Square Re is relatively unlikely to require further funding given its current capital position.


The stable outlook on Blue Square Re reflects that on other core operating entities of the AEGON group. We may cease to view Blue Square Re as core to AEGON if its status as an internal reinsurer were to change, although we consider this an unlikely scenario.

Related Criteria And Research

-- Principles Of Credit Ratings, Feb. 16, 2011

-- Refined Methodology And Assumptions For Analyzing Insurer Capital Adequacy Using The Risk-Based Insurance Capital Model, June 7, 2010

-- Counterparty Credit Ratings And The Credit Framework, April 14, 2004

-- Interactive Ratings Methodology, April 22, 2009

-- Holding Company Analysis, June 11, 2009

-- Group Methodology, April 22, 2009

Ratings List

New Rating; CreditWatch/Outlook Action

Blue Square Re N.V.

Counterparty Credit Rating

Local Currency AA-/Stable/--

Financial Strength Rating

Local Currency AA-/Stable/--

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