AM Best unveils rating for Hannover Life Re Bermuda

16-01-2018

AM Best has assigned a financial strength rating of A+ (Superior) to Hannover Life Reassurance Company of America (Bermuda), a wholly owned indirect subsidiary of Hannover Re.

It added that the outlook assigned to the rating is stable and that the ratings of Hannover Re and other main subsidiaries remain unchanged.

According to the rating agency, the ratings reflect HLRA Bermuda’s strategic importance and integration into its ultimate parent company, Hannover Re, as a vehicle for placing the group’s related life US reinsurance business. As a result it said that HLRA Bermuda’s ratings are aligned with that of Hannover Re, and reflective of the group’s balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.

AM Best’s expects that HLRA Bermuda will receive a significant capital injection to support the additional risks undertaken by the operation to recapture a significant portion of its US business into this subsidiary. Furthermore, the restructuring of HLRA Bermuda will allow the company to obtain certified reinsurer status in Florida. Hannover Re will manage its capital at HLRA Bermuda in line with other subsidiaries, taking into consideration its internal model, local solvency requirements and financial return metrics. Earnings are expected to be consistent with the group’s target return on capital.

Am Best, Hannover Re, Hannover Life Reassurance Company of America, Ratings, Bermuda

Bermuda Re