A.M. Best Europe has affirmed the financial strength rating of “A (Excellent)” and issuer credit rating of “a” of Delvag Luftfahrtversicherungs-AG (Delvag) and its subsidiary, Delvag Rueckversicherungs-AG (Delvag Rueck)—both domiciled in Germany.
The ratings of Delvag reflect its solid risk-adjusted capitalisation and consistently strong operating performance. The ratings also consider Delvag’s role as the insurance captive of its ultimate parent, Deutsche Lufthansa-AG (Lufthansa).
The ratings of Delvag Rueck benefit from full rating enhancement to the level of Delvag’s ratings, reflecting Delvag Rueck’s strategic importance to the Delvag group, integration into Delvag in terms of business strategy and management, as well as the profit and loss absorbtion agreement provided by Delvag.
In a statement, the rating firm said: “Negative ratings actions could occur if there were a material decrease in risk-adjusted capitalisation, and/or a significant deterioration in the operating performance of either Delvag and/or Delvag Rueck. Additionally, any deterioration in the credit rating of Lufthansa could lead to negative rating actions for Delvag and Delvag Rueck.”
