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A.M. Best Affirms Ratings of Hannover Life Reassurance Company of America


CONTACTS:

Brian Spadaccino, CFA
Financial Analyst
(908) 439-2200, ext. 5803
brian.spadaccino@ambest.com

Tom Rosendale
Assistant Vice President
(908) 439-2200, ext. 5201
thomas.rosendale@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - SEPTEMBER 25, 2015 09:38 AM (EDT)
A.M. Best has affirmed the financial strength rating of A+ (Superior) and issuer credit rating of “aa-” of Hannover Life Reassurance Company of America (HLRA) (Orlando, FL). The outlook for both ratings is stable.

The ratings of HLRA’s parent, Hannover Rueck SE (Hannover Re) (Germany), have been extended to HLRA and reflect HLRA’s role as a key global operating subsidiary of Hannover Re. HLRA markets life and health reinsurance solutions in the United States, a major market for Hannover Re, and generates approximately one-third of Hannover Re’s worldwide life/health gross written premiums.

The ratings also reflect HLRA’s strong risk-adjusted capital position, which benefits from the significant use of internal reinsurance with affiliates, good statutory operating performance and a relatively diverse business model. HLRA continues to be recognized as one of the market leaders in acquiring in-force blocks of business and providing capital management solutions to the life, health and Medicare insurance industries in the United States. Furthermore, HLRA has a competitive position as a top-five life reinsurer with a 10% share in 2014 of the U.S. ordinary recurring reinsurance premium.

Offsetting rating factors include lower cession rates and the potential for future volatility in HLRA’s statutory operating performance and balance sheet metrics. HLRA operates a transaction-oriented business model supported by the use of affiliate retrocession, which can result in fluctuating financial results.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

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