SHERIDAN, WYOMING – July 30, 2024 – S&P Global Ratings (S&P) has revised its outlook for the Gothaer Insurance Group from "stable" to "positive" in light of the group's proposed merger with Barmenia. The 'A' financial strength ratings for Gothaer Allgemeine Versicherung AG, Gothaer Lebensversicherung AG, and Gothaer Krankenversicherung AG have been affirmed, reflecting the group's robust capitalization and earnings.
Merger to Drive Enhanced Competitive Positioning
S&P's assessment anticipates that the successful consummation of the merger will further strengthen Gothaer's competitive position within the insurance market. The combined entity is expected to leverage a diversified product portfolio, an expanded distribution network, and a broader customer base to drive growth and profitability. S&P also noted Gothaer's strong financial risk profile, characterized by robust capitalization and consistent earnings generation.Additionally, the agency highlighted the enhanced resilience that a merged entity would exhibit due to its diversified exposure across all insurance lines of business.
Potential Rating Upgrade on the Horizon
With the elevation of the outlook to "positive," S&P has indicated the potential for a rating upgrade to 'A+' within the next 12 to 24 months, contingent upon the successful execution of the merger and the sustained maintenance of the group's strong financial risk profile. This prospect underscores the strategic rationale behind the merger and the potential for significant value creation for stakeholders.
CEO Oliver Schoeller Comments on Positive Outlook
Oliver Schoeller, CEO of Gothaer, expressed his satisfaction with S&P's decision, stating: "The positive outlook revision is a testament to the strategic merits of our planned merger with Barmenia. We are confident that this combination will create a stronger, more resilient, and more competitive organization that is well-positioned to meet the evolving needs of our customers and distribution partners. We look forward to working with our regulators and stakeholders to bring this transaction to fruition."
A Promising Trajectory for the Combined Entity
S&P's positive outlook for Gothaer signals a promising trajectory for the group as it embarks on this transformative merger. The combined entity is expected to leverage its strengths to capitalize on growth opportunities in the insurance market while maintaining a strong focus on financial stability and customer service excellence.