AM Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating (ICR) of "a" of Hannover Re and its rated subsidiaries.
All ratings have been removed from under review with negative implications and assigned a stable outlook.
The ratings were placed under review in November 2005 in connection with the acquisition of Gerling by the parent company, Talanx AG.
AM Best said Hannover Re's ratings reflect its "excellent risk-adjusted capitalisation, excellent business position and the expected earnings recovery following the substantial catastrophe losses in 2005."
The ratings agency said that offsetting factors are the group's limited financial flexibility and high dependence upon retrocession in property/casualty.
