Glencar Insurance Company (GIC), a newly established subsidiary of German reinsurer Hannover Re, has received a financial strength rating of A+ (Superior) from A.M. Best.
The rating agency also assigned GIC a long-term issuer credit rating of “aa”, in addition to a stable outlook.
A.M. Best explained that the ratings reflected GIC’s strategic importance to and integration within the Hannover Re group, and so account for the reinsurer’s strong balance sheet and operating performance, as well as its favourable business profile and enterprise risk management.
The company also benefits from explicit parental support through a significant stop-loss reinsurance cover from Hannover Re, the agency noted.
GIC was created to provide Hannover Re with a primary platform to access business in the U.S, while protecting the company’s existing U.S franchise by having the flexibility to adapt to changes in the operating environment.
The subsidiary can currently operate in most states and expects to have admitted licenses or reinsurance accreditations for all 50 states by year-end 2019.
GIC commenced writing specialty admitted agency business in the U.S in 2018 through its associated managing general agent, Glencar Underwriting Managers, in order to support Hannover Re’s plans to expand its share in selected specialty niche markets.
The insurer is expected to write some of the admitted niche business on a direct basis in 2019, and has assumed business of HDI Global Insurance Company, a group affiliate.
