Insurance rating agency A.M. Best Co. has issued ratings on Hartford insurer The Hartford Steam Boiler Group and its affiliates, owing largely to their ownership by German insurance giant Munich Re.
Best said Thursday it affirmed the financial strength rating of A++ (superior) and the issuer credit ratings of “aa+” of the members of the Hartford insurer Boiler Group: The Hartford Steam Boiler Inspection and Insurance Co.; The Hartford Steam Boiler Inspection and Insurance Co. of Connecticut; and The Boiler Inspection and Insurance Co. of Canada
In addition, A.M. Best Europe – Rating Services Ltd. has affirmed the same A++ “aa+” for Hartford Steam’s U.K. unit, HSB Engineering Insurance Ltd.
Outlook for all ratings is stable, Best said.
The insurance credit-rating service said its ratings affirmations for Hartford Steam Boiler Group reflect the group’s stand-alone strengths and the benefits from synergies with Munich Reinsurance America Inc. and their parent, Munich Reinsurance Co.
Munich bought former HSB Group Inc. from then-struggling American International Group for $742 million in 2009.
Best said HSB’s relationship with Munich Re has provided access to new markets in continental Europe and refocused the U.S. business on HSB’s core equipment breakdown coverage. Furthermore, HSB’s strong enterprise risk management practices are bolstered by from Munich Re’s extensive enterprise risk management resources.
Billionaire U.S. investor Warren Buffett owns about a 3 percent stake in Munich Re.
