Press Release - JANUARY 04, 2019
AM Best Removes From Under Review, Upgrades ICR of Talanx AG and Affirms Credit Ratings of Talanx Re
FOR IMMEDIATE RELEASE
LONDON - JANUARY 04, 2019
The ratings reflect Talanx AG’s and Talanx Re’s strategic importance to HDI V.a.G, and thereby the ratings reflect the group’s balance sheet strength of very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
The rating actions for Talanx AG reflect the approval of a reinsurance license from the German regulator, BaFin, which will allow the company to write reinsurance business effective 1 January 2019. The transformation of Talanx AG to an operating holding entity will allow the group to implement its new target operating model, which will gradually transform Talanx AG into the main risk carrier for most of the internal non-life reinsurance treaty cessions (excluding facultative). Its expanded role as an internal reinsurer will broaden Talanx AG’s revenue sources, further improving financial flexibility that will lead to an increased ability to service ongoing and prospective obligations.
The rating affirmations of Talanx Re reflect its continuing strategic importance as a vehicle to manage the retention and provide technical support to the group’s Industrial Lines division, acting as a captive. The group expects the profile to improve over the coming years, as industrial risks will be supplemented by specialty risks going forward.
The Long-Term IR has been upgraded to “a” from “bbb+” for the following:
Talanx Finanz (Luxembourg) S.A.—
— EUR 500 million 8.367% subordinated fixed to floating rate notes, due 2042
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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