TMCnet News
A.M. Best Affirms Credit Ratings of Hannover Life Reassurance Company of AmericaA.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of "aa-" of Hannover Life Reassurance Company of America (HLRA) (Orlando, FL). The outlook of these Credit Ratings (ratings) is stable. The ratings of HLRA's parent, Hannover Rueck SE (Hannover Re), have been extended to HLRA and reflect its role as a key global operating subsidiary of Hannover Re. HLRA markets life reinsurance solutions in the United States, an important global market for Hannover Re. HLRA generates approximately one-third of Hannover Re's worldwide life/health gross written premium. The ratings also reflect HLRA's strong risk-adjusted capital position, which benefits from the significant use of internal reinsurance with affiliates, good statutory operating performance and relatively diverse business model. HLRA continues to be recognized as one of the market leaders in acquiring in-force blocks of business and providing capital management solutions to the life, health and Medicare insurance industries in the United States. Furthermore, HLRA has a competitive position as a top-five life reinsurer with a 10.0% share of the U.S. ordinary recurring reinsurance market in 2015 and adequate liquidity to meet obligations. Offsetting rating factors include the potetial for future volatility in HLRA's statutory operating performance and balance sheet metrics. HLRA operates a transaction-oriented business model supported by the use of affiliate retrocession, which can result in fluctuating financial results. Positive rating actions for HLRA could occur if A.M. Best takes a positive rating action on Hannover Re. Factors that could result in negative rating actions for HLRA include a negative rating action taken by A.M. Best on Hannover Re or a material deterioration in A.M. Best's view of the strategic importance of HLRA to Hannover Re. 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. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160930005527/en/ |
