Standard & Poor's has lowered its long-term counterparty credit and insurer financial strength ratings of Gerling to single-'A' from single-'A'-plus.
Standard & Poor's credit analyst Laura Santori said: "The downgrade is based on continuing difficult economic conditions - particularly in Germany, one of Gerling's main markets, which continues to be affected by a high rate of insolvencies - and unexpected losses in a niche line that has been discontinued."
The ratings agency made it clear that a potential increase in reinsurance costs may delay the expected recovery of Gerling's performance.
