Hannover ratings cut.

Hannover Re pledged to defend its credit rating, possibly with capital raising, as it announced a ne...

Hannover Re pledged to defend its credit rating, possibly with
capital raising, as it announced a net profit of EUR267m in 2002.


Rating agency AM Best has placed its 'A+' (superior) rating of the group
and its core subsidiaries under review with negative implications.


The agency said it believed Hannover Re would require further funds to
sustain its risk-adjusted capital levels in 2003.


Standard and Poor's downgraded the company, to 'AA-' (very strong) from
'AA', and removed it from CreditWatch.


Prior to last month's results, Moody's, which rates Hannover Re based on
public information, had downgraded its financial strength rating of
Hannover Re from 'A2' (good) to 'Baa1' (adequate) over concerns about
Hannover Re's reinsurance recoverables.


Hannover Re's 2002 operating profit was the highest in its history, at
EUR471m. Its combined ratio was 96.3%, down from 116% in 2001. Net
investment income was stable at EUR928m.


Net earned premiums rose 18% to EUR7688m, with 17% growth to EUR3502m in
net earned property and casualty premiums, 23% growth to EUR2142m in life
and health, 71% growth to EUR833m in programme business and a fall of 5%
to EUR1211m in financial reinsurance premiums.


Executive board chairman Wilhelm Zeller predicted good results for 2003:
"The performance of the business group will again be very good in 2003."
Click here for a
Špdf of this story
  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.postonline.co.uk/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have an Insurance Post account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: