A.M. Best Assigns Ratings to Talanx Reinsurance (Ireland) Ltd.
LONDON -- November 13, 2012
A.M. Best Europe – Rating Services Limited has assigned a financial strength
rating of A (Excellent) and an issuer credit rating of “a” to Talanx
Reinsurance (Ireland) Ltd. (Talanx Re) (Ireland). The outlook assigned to both
ratings is stable.
The ratings of Talanx Re reflect its strong risk-adjusted capitalisation, good
expected operating performance and the support the company receives from its
parent company, Talanx AG.
Talanx Re is a reinsurance company fully owned by Talanx AG. The company has
been operating since 2009, and its sole activity consists of the transaction
of reinsurance business with the Talanx Primary Group. Talanx Re’s purpose is
to optimize the group’s reinsurance structure and manage capital more
efficiently. It is not expected to write third party business prospectively.
Talanx Re benefits from strong risk-adjusted capitalisation, with capital and
surplus increasing by 18% to EUR 60.5 million at year-end 2011. The company’s
premium income is expected to grow strongly in the next few years, from EUR
82.7 million in 2011 to EUR 250-275 million in 2014. This growth is expected
to be supported by a capital increase of EUR 60 million at year-end 2012.
Future capital levels are expected to be supported by solid retained earnings.
A.M. Best expects Talanx Re to post good financial results going forward in
line with the overall group’s performance. The company reported a profit
before tax of EUR 10.2 million in 2011 (2010: EUR 8 thousand), with the
combined ratio decreasing to 95.9% (2010: 100.5%) as a result of improved
development on the motor book.
There are currently no upwards or downwards pressures on Talanx Re’s ratings.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilised include: “Risk Management and the Rating
Process for Insurance Companies”; “Understanding Universal BCAR”; “Rating
Members of Insurance Groups”; and “Catastrophe Analysis in A.M. Best Ratings”.
Best’s Credit Rating Methodology can be found at
In accordance with Regulation (EC) No. 1060/2009, the following is a link to
required disclosures: A.M. Best Europe - Rating Services Limited Supplementary
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best
Company. Founded in 1899, A.M. Best Company is the world's oldest and most
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Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Company
Charlotte Vigier, +(44) 20 7626 0270
Sam Dobbyn, +(44) 20 7626 0264
Senior Financial Analyst
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
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