Ratings Recap: National Grid, HDI (Belgium), HDI (Germany), HDI (Italy)
A.M. Best Co. has affirmed the financial strength rating of ‘A’ (Excellent) and the issuer credit rating of “a” of National Grid Insurance Company Ltd. (NGICL), which is based on the Isle of Man, a captive of National Grid plc. The outlook on both ratings remains stable. “The ratings reflect NGICL’s strong risk-adjusted capitalization and comprehensive reinsurance program, partially offset by the large underwriting losses incurred during the financial year 2007-2008,” said Best.
Standard & Poor’s Ratings Services has assigned its ‘A’ counterparty credit and insurer financial strength ratings to Belgium-based insurer HDI-Gerling Assurances S.A. (HDI/B) with a stable outlook. “The ratings reflect our view that HDI/B is core to its immediate parent, HDI-Gerling Verzekeringen N.V. in the Netherlands (HDI/NL; A/Stable/–), which is, in turn, considered strategically important to Talanx Primary Group, whose core operating entities are rated A+/Stable/–,” explained S&P credit analyst Rowena Potter.
S&P added that the “stable outlook on HDI/B reflects the stable outlook on HDI/NL, and the stable outlook on the core operating entities of the Talanx Primary Group. The outlook will in future move in tandem with that on HDI/NL.”
Standard & Poor’s Ratings Services has assigned its ‘A’ long-term counterparty and insurer financial strength ratings on Germany’s HDI-Gerling Welt Service AG (HG-WS) with a stable outlook. “The ratings reflect the classification of the company, which is fully owned by Germany-based HDI-Gerling Industrie Versicherung AG (HG-Industrie AG; A+/Stable/–) as strategically important to Talanx AG (A-/Stable/–), the parent company of Talanx Primary Group (TPG),” S&P stated. From January 2008, HG-WS will act as a reinsurer for local business as part of international programs in industrial lines underwritten mainly by TPG’s operations in Belgium, the Netherlands, and, to a lesser extent, in the U.K. and Italy. “We expect HG-WS to remain strategically important to TPG. Future rating actions will largely depend on those on its parent,” added S&P credit analyst Johannes Bender.
Standard & Poor’s Ratings Services has assigned its ‘A’ counterparty credit and insurer financial strength ratings to Italian insurer HDI Assicurazioni SpA (HDI/I) with a stable outlook. “The ratings reflect our view that HDI/I is strategically important to Talanx Primary Group,” noted S&P credit analyst Wolfgang Rief. “An additional supporting rating factor is HDI/I’s strong capitalization.” S&P indicated, however that, “HDI/I’s limited competitive position, which does not yet allow for economies of scale, thus impacting earnings potential,” should be considered as an offsetting factor. “In addition, HDI/I is facing execution risks, as the company is in the implementation phase of new IT software, which will be vital for in-depth analysis of the portfolio and cost control,” the bulletin said. “We expect HDI/I to remain a strategically important company within TPG. Future rating actions are largely dependent on those on its parent,” Rief added.