S&P: Hannover ReTakaful view to negative

Standard & Poor’s said it revised the outlook on Hannover ReTakaful BSC to negative from stable.

The agency also said it affirmed the company’s long-term issuer financial strength and counterparty credit ratings at A+.

S&P also said it assigned A+ long-term local financial strength and counterparty credit ratings to Hannover ReTakaful Labuan Family and Hannover ReTakaful Labuan General.

The outlook on both entities is negative.

The outlook revision follows a significant deterioration of the company’s capital adequacy due to strong premium growth and continuing weak underwriting performance in 2014, S&P said.

The company’s financial risk profile remains strong, reflecting an expectation that the company’s capital position will be restored to an extremely strong level through more controlled growth in 2015 and 2016, the agency said.

S&P said it also continues to assess the company’s business risk profile as fair based on the aggregate intermediate insurance industry and country risk that it faces in its countries of operation.

© 2015 Prospect News.
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