AM Best Revises Outlooks to Positive for HDI Haftpflichtverband der Deutschen Industrie V.a.G. and Its Rated Subsidiaries.
ENPNewswire-November 15, 2021--AM Best Revises Outlooks to Positive for HDI Haftpflichtverband der Deutschen Industrie V.a.G. and Its Rated Subsidiaries
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Release date- 14112021 - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a+' (Excellent) of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.) (Germany) and its insurance subsidiaries.
AM Best also has revised the outlooks to positive from stable and affirmed the Long-Term Issue Credit Rating (Long-Term IR) of 'a' (Excellent) of a debt instrument issued by Talanx Finanz (Luxembourg) S.A., and guaranteed by Talanx AG (Germany), the intermediate operating holding company for all HDI V.a.G. group companies, which combined form the Talanx Group. (See below for a detailed list of companies and the debt instrument.)
Additionally, AM Best has affirmed the Mexico National Scale Rating of 'aaa.MX' (Exceptional) of HDI Global Seguros, S.A. (Mexico City, Mexico). The outlook of this Credit Rating (rating) is stable.
The ratings reflect HDI V.a.G.'s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).
The revision of the outlooks to positive reflects AM Best's expectation that HDI V.a.G.'s prudent risk culture and strong and stable operating performance, supported by improved profitability of its primary business segment, will further enhance the resilience of its balance sheet.
AM Best expects HDI V.a.G.'s consolidated risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), to be maintained at the strongest level, underpinned by strong earnings generation and a prudent capital management approach. Financial leverage and coverage ratios are supportive of the balance sheet strength assessment, and financial flexibility is considered excellent due to the group's good access to capital markets. The group's balance sheet strength further benefits from excellent liquidity. A minor offsetting factor is a modest reliance on soft capital components to support its capital position, which include the value of in-force life business and credit for hybrid debt.
HDI V.a.G. has a track record of relatively strong and stable operating performance, demonstrated...
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