Best’s News & Research Service - June 12, 2023 01:23 PM (EDT)
AM Best Comments on Credit Ratings of HDI Haftpflichtverband der Deutschen Industrie V.a.G. & Its Rating Insurance Subsidiaries
- June 12, 2023 01:23 PM (EDT)
Amsterdam //BestWire// - AM Best has commented that the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G) (Germany) and its rating subsidiaries remain unchanged following the announcement that the Talanx Group acquired Liberty Mutual’s primary insurance operations in Latin America. The outlook of these Credit Ratings (ratings) is stable. Talanx AG is the intermediate operating holding company for all HDI V.a.G group companies, which combined form the Talanx Group.
The current ratings of HDI V.a.G reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management.
The Talanx Group has announced that its Retail International division has signed a purchase agreement to acquire the Liberty Seguros personal and small commercial non-life business in Brazil, Chile, Columbia and Ecuador at a purchase price of approximately EUR 1.4 billion. The closing of the acquisition is expected to be finalised in the first half of 2024, subject to relevant governmental and regulatory approvals. The group has sufficient capital resources and financial flexibility to absorb the purchase price. The transaction is expected to complement the Talanx Group’s strategy to further diversify its earnings profile between its reinsurance and primary income over the medium term. It is expected that the transaction will significantly improve the scale and competitive position of the Retail International division in Latin America and improve the segments diversification across its lines of business, as well as its geographical balance between its Eastern European and Latin American businesses.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.