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5 years ago
TEXT-S&P rates Hannover Reinsurance Africa, Hannover Life Reassurance Africa
November 27, 2012 / 5:20 PM / 5 years ago

TEXT-S&P rates Hannover Reinsurance Africa, Hannover Life Reassurance Africa

Overview
     -- We are assigning a 'zaAA+' South Africa national scale rating to South 
Africa-based reinsurers Hannover Reinsurance Africa Ltd. and Hannover Life 
Reassurance Africa Ltd.
     -- We are also affirming our 'A-' ratings on the two companies.
     -- The negative outlook on the two companies reflects that on South 
Africa.

Rating Action
On Nov. 27, 2012, Standard & Poor's Ratings Services assigned its 'zaAA+' 
South Africa national scale rating to Johannesburg-based Hannover Re Africa 
Ltd. (HRAL) and Hannover Life Reassurance Africa Ltd. (HLRAL). We also 
affirmed our 'A-' global scale long-term counterparty credit and insurer 
financial strength ratings on HRAL and HLRAL. The outlook on these entities is 
negative.

Rationale
The ratings on HRAL and HLRAL (collectively, the Hannover Re Africa subgroup) 
reflect our view of the subgroup's strategic importance to the Hannover Re 
group, and its good operating performance. These strengths are partially 
offset by high business risk stemming from the subgroup's business model, the 
exposure of its business and investment portfolios and deposits to South 
Africa, and the influence of general country risk factors on the subgroup's 
business franchise and financial profiles.

Outlook
The negative outlook on HRAL and HLRAL reflects that on South Africa. If we 
were to lower the sovereign credit rating on South Africa, we would also lower 
the ratings on HRAL and HLRAL in line with those on the sovereign.

Based on current information, we consider an upgrade to be unlikely.

Related Criteria And Research
All articles listed below are available on RatingsDirect on the Global Credit 
Portal.
     -- Group Methodology, April 22, 2009
     -- Interactive Ratings Methodology, April 22, 2009
     -- Understanding National Rating Scales, April 14, 2005
     -- Criteria Update: Factoring Country Risk Into Insurer Financial 
Strength Ratings, Feb. 11, 2003

Ratings List
New Rating

Hannover Reinsurance Africa Ltd.
Hannover Life Reassurance Africa Ltd.
 South Africa National Scale           zaAA+/--/--        

Ratings Affirmed

Hannover Reinsurance Africa Ltd.
Hannover Life Reassurance Africa Ltd.
 Counterparty Credit Rating             A-/Negative/--     
 Financial Strength Rating              A-/Negative/--     


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

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