The rating agencies most relevant to the insurance industry have awarded Hannover Re very strong insurer financial strength ratings:
Standard & Poor's
AA- ("Very Strong"), stable outlook
[ 2020-06-18 ]
A+ ("Superior"), stable outlook
[ 2020-12-23 ]
The importance of good ratings
Very good financial strength ratings from major rating agencies is one of the most important prerequisites for a reinsurer to be able to participate in the reinsurance market.
Primary insurers depend to a great extent on these ratings in their assessment of the security of the reinsurer, influencing the formers' decision to place business with the latter or not (and to what extent/in which lines of business). Rating agencies such as Standard & Poor's and A.M. Best therefore provide current opinions about reinsurers.
They observe the reinsurers' ability to pay claims on their policies and contracts in accordance with the terms agreed with the cedants. The main focus of the rating agencies' assessment lies on financial performance, strategic positioning and long-term ability to cover damages.
A first class rating is now more important than ever to be a key player in the international reinsurance market. Hannover Re has an interactive rating agreement with Standard & Poor's and A.M. Best, which means that these two rating agencies have access to confidential information about our company.
Fundamentals behind rating agency assessment of Hannover Re:
- Very strong competitive position
- Very strong capital and earnings
- Moderately high risk exposure
- Neutral funding structure
Quotes by Standard & Poor's Research Update, 18 June 2020.