AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of aa to Glencar Insurance Company (GIC) (Milwaukee, Wisconsin, USA), a wholly owned subsidiary of Hannover R¼ck SE (Hannover Re). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect GICs strategic importance to and integration within the Hannover Re group, and thereby the ratings reflect Hannover Res balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.
GIC is a newly established subsidiary of Hannover Re, which provides the group a primary platform to access business within the United States, in addition to flexibility to adapt to changes in the operating environment to protect Hannover Res existing franchise within the United States. At present, the company can operate in most states and expects to have admitted licenses or reinsurance accreditations for 50 states by year-end 2019. GIC benefits from explicit parental support through a significant stop-loss reinsurance cover from Hannover Re.
GIC commenced writing specialty admitted agency business in the United States in 2018 through its associated managing general agent, Glencar Underwriting Managers, in order to support Hannover Res plans to expand its share in selected specialty niche markets. The company is expected to write some of the admitted niche business on a direct basis in 2019. In addition, GIC assumed business of HDI Global Insurance Company, a group affiliate.
This press release relates to Credit Ratings that have been published on AM Bests 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 Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.
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