Standard & Poor's (S&P) has revised the outlook on Hannover Re and its core subsidiaries to stable from negative.
At the same time the AA- long-term counterparty credit rating and insurer financial strength ratings for the reinsurer and its core subsidiaries were affirmed.
“The outlook revision reflects the reduction in exposure to reinsurance recoverables and improved financial flexibility following the successful flotation of an additional 21% of shares in 2004,” said S&P credit analyst Simon Marshall.
In addition S&P affirmed its A long-term subordinated debt ratings on the €1.1bn notes issued by Hannover Finance (Luxembourg) SA and on the $30m notes issued by Hannover Finance. Both bonds are guaranteed by Hannover Re.
The ratings reflect the group's very strong operating performance, very strong competitive position, and strong capitalisation, said the ratings agency. Management is also considered a positive factor for the ratings.
