30 Mar 2010
Fitch Ratings has revised the outlooks of Hannover Re and its reinsurance subsidiary E+S Re stable from negative. At the same time, the agency has affirmed both companies' insurer financial strength ratings at A+.
Fitch said the revision reflects the strong improvement in Hannover Re's capital adequacy in 2009 and the group's strong operating performance, although it notes this was supported by a benign catastrophe environment.
The rating agency added that Hannover’s exposure to credit reinsurance is manageable and noted the conservative composition of the group's investment portfolio.
“The agency also notes Hannover Re's reduced exposure to counterparty risk which has been achieved by increasing levels of net retention, and the group's activities in reducing its exposure to peak catastrophe zones,” Fitch said.
