A.M. Best Affirms Ratings of HDI-Gerling America Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of HDI-Gerling America Insurance Company (HDI-GAIC) (Chicago, IL). The outlook for both ratings remains stable.

The ratings of HDI-GAIC largely reflect its solid risk-adjusted capitalization and the benefit of the explicit support provided through substantial internal reinsurance by HDI-Gerling Industrie Versicherung AG (HGI) (Germany) and its subsidiary and immediate parent of HDI-GAIC, HDI-Gerling Welt Service AG (HGWS) (Germany), via significant facultative cessions and 95% quota share treaties, which have been in effect since January 1, 2000 and July 1, 2008, respectively; a retroactive reinsurance cover with HGI that covers any net adverse development on policies incepting prior to January 1, 2000; and the implied support of future parental commitment. HDI-GAIC principally markets global-linked commercial lines business to parent company clients that have operations in the United States.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
David S. Blades, CPCU, 908-439-2200, ext. 5422
Senior Financial Analyst
david.blades@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.