The rating affirmations reflect Hannover Re’s excellent consolidated risk-adjusted capitalisation, highly diversified earnings and superior business profile. Partly offsetting factors are Hannover Re’s exposure to the deteriorating conditions in the global reinsurance market and the underperformance within some segments of its life and health portfolio. The ratings of Hannover Re have been extended to its main operating subsidiaries, which all maintain adequate levels of stand-alone risk-adjusted capitalisation.
Hannover Re’s excellent consolidated risk-adjusted capitalisation continues to be supported by the group’s strong earnings generation, access to the traditional and alternative retrocession markets and hybrid debt programme. The group’s financial leverage and interest coverage ratios remain well within A.M. Best’s tolerance for its ratings.
Hannover Re’s highly diversified profile and robust enterprise risk management support the resilience and stability of its operating results, in spite of the intense competitive conditions, low interest rates and the economic challenges it faces in some markets. Despite the high frequency of catastrophe/large losses experienced during the second quarter of 2016, Hannover Re’s performance remained strong with the group reporting a non-life combined ratio of 95.4% for the first half of the year, unchanged from the results reported in the same period of 2015. Total major losses arising during the first half of 2016, amounted to
The mortality and morbidity segments of the life and health account remain areas of underperformance for Hannover Re. This largely reflects the higher than expected levels of claims experience from the
As the third largest global reinsurer, Hannover Re benefits from its highly diversified profile (by product, service offerings and geographic spread) and its lean and efficient infrastructure, which supports its relatively low expense base, allowing the group to focus on selective underwriting in the intensely competitive environment. Although global reinsurance conditions continue to deteriorate,
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed for Hannover Rueck SE and its following subsidiaries:
E+S Rueckversicherung AG
Hannover Re (Bermuda) Ltd
Hannover Re (Ireland) Designated Activity Company
Hannover Life Reassurance Bermuda Limited
International Insurance Companyof Hannover SE
The following Long-Term IRs have been affirmed:
-- “a+” on the
-- “a+” on the
The following Long-Term IR has been affirmed:
Hannover Rueck SE—
-- “a” on the
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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