OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa” to Hannover Life Reassurance Company of America (Bermuda) Ltd. (HLRA Bermuda) (Bermuda), a wholly owned indirect subsidiary of Hannover Rueck SE (Hannover Re). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings of Hannover Re and other main subsidiaries remain unchanged.
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 U.S. reinsurance business. Therefore, HLRA Bermuda’s ratings are aligned with that of Hannover Re, and reflective of the group’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, very favorable business profile and very strong enterprise risk management.
A.M. Best’s expectation is 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 U.S. 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.
Hannover Re is the third-largest global reinsurer, with a highly diversified profile by product and geography. The group continues to enhance its global market footprint through a wide range of reinsurance and financial products to provide traditional and unique solutions to cedants in a highly competitive and challenging operating environment.
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