VHV Insurance Group upgrade by S&P
S&P Global Ratings has upgraded the core companies of Germany-based multiline insurer VHV Insurance Group to 'A+' from 'A'. The outlook is stable.
At the same time, it also raised the rating on the group's holding company, VHV Holding AG, to 'A-' from 'BBB+'. The outlook is stable.
The upgrade reflects its view that VHV Group's overall financial risk profile has strengthened as a result of gradually improved capital adequacy fuelled by earnings sustainably outperforming the market average in the German P/C and life market.
“We consider that its mutual status, which allows to retain all earnings, alongside its limited sensitivity to market movements, will enable VHV Group to maintain its capital adequacy at the 'AAA' level over the next two years,” S&P said.
“The group has continued to strengthen its financial risk profile, and we now assess it as extremely strong compared with very strong previously.
“Additionally, under Solvency II, its solvency ratio is very comfortable and less sensitive to interest rates than that of peers and supports our view of its capital adequacy.”
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