World News: 15:20 GMT Friday 11th January 2019. [AM Best via Businesswire via SPi World News]
AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating to “a+” from “aa” of HDI Global Specialty SE (Germany). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating actions follow the change in ownership of HDI Global Specialty SE (previously known as International Insurance Company of Hannover SE) to HDI Global SE, a direct subsidiary of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G), from Hannover Rueck SE (Hannover Re).
The ratings reflect the group’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management. The ratings of HDI Global Specialty SE reflect its strategic importance to the group and its alignment with its ultimate parent, HDI V.a.G.
Effective 1 January 2019, HDI Global SE acquired the majority of the shares (50.2%) of HDI Global Specialty SE, leaving Hannover Re with a non-controlling stake in the entity. Merging the specialty lines activities of HDI Global SE and Hannover Re will allow the new entity to benefit from an enhanced global footprint and consequently, enhance returns from broader growth opportunities. HDI Global Specialty SE is forecast to write approximately EUR 1.2 billion in gross written premiums in 2019.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on AM 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 AM 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. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Business Wire: 15:20 GMT Friday 11th January 2019
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