A.M. Best Affirms Ratings of Hannover Life Reassurance (Ireland) Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of Hannover Life Reassurance (Ireland) Limited (HLRI HLRI Heart Lung Research Institute (Columbus, Ohio) ). The outlook for both ratings remains stable. The ratings of HLRI reflect its stable business profile, strong operating performance, excellent risk-adjusted capitalisation and the support provided by its parent, Hannover Rueckversicherung AG (Hannover Re Hannover Re (FWB: HNRGn), in German Hannover Rückversicherung AG, with gross premium of around €9 billion in 2006, is one of the five largest reinsurance groups in the world. Its headquarters are in Hanover, Germany. ) (Germany). A.M. Best expects HLRI's business growth to stabilize at about 5% in 2008, following a compounded annual growth rate of about 20% over the last three years. This will be the result of the closure to new business of certain of HLRI's UK term assurance treaties, which will be offset by new business, mainly originating in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . A.M. Best expects HLRI's 2007 underlying earnings to remain strong. Pre-tax earnings are expected to decline by 32% in 2007 to about EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 50 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 73 million) despite improved investment performance. This represents a move toward a more sustainable earnings level following the artificially high 2006 result, which was boosted by one-off items. A.M. Best expects HLRI's expenses to rise by a moderate 3% in 2007, mainly driven by acquisition expenses. Going forward, A.M. Best expects HLRI's pre tax profit margin (pre tax profits as a percentage of earned premiums) to stabilize at a good 5% as business growth steadies. A.M. Best believes that HLRI's risk-adjusted capitalisation will remain strong in 2007, driven by stable premium growth and the increase in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. following the parent company's plans not to extract a dividend in 2007. This will follow the strong improvement shown in 2006, which was attributed to a significant rise in earnings. Going forward, A.M. Best expects HLRI's risk-adjusted capitalisation to remain stable as capital and surplus grows in line with risks assumed. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion