A.M. Best Co. announced that it has affirmed the financial strength rating of A- (Excellent) of Germany’s Gerling Konzern Allgemeine Versicherungs-AG (GKA) and its core subsidiaries, Gerling America Insurance Company (New York) and Gerling Canada Insurance Company (Ontario), and has changed the outlook to negative from stable.
“The change in outlook reflects the potential damage that a further delay in the sales process of GKA’s parent company, Gerling-Konzern Beteiligungs-AG (GKB), could have on GKA’s excellent business position in the industrial sector, where it is one of the market leaders,” said Best.
The rating agency added that it “believes that GKA’s assets are sufficiently protected to meet policyholders’ claims and will not be used to finance any potential difficulties of Gerling Konzern Globale Ruckversicherungs-AG (GKG),” the group’s reinsurance division, which it is in the process of selling. (See IJ Website March 31). Best added that “failure to reach an agreement with a prospective buyer by the end of May 2003 will add pressure to the current rating level, which takes into account GKA’s prospective business position.”
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