Gothaer Insurance Group

The stable outlook reflects our view that Gothaer will maintain its strong competitive position in the German life, health, and property/casualty (P/C) insurance market, particularly in the SME and commercial segment, along with resilient capitalization and robust underwriting profitability over the next 12-24 months, and despite ongoing capital market volatility. We are unlikely to lower the ratings over the next 12-24 months. However, we could do so if: The group's earnings are consistently weaker than our base-case assumptions, or if they are more volatile and underperform those of peers in the German market; or We think that Gothaer could no longer maintain capital adequacy at the 'A' level, which could happen as a result of aggressive growth, higher investment risk,

...Gothaer will remain a key player in Germany, especially in the small-to-midsize enterprise (SME) and commercial segment. In our opinion, the group's diverse distribution channels and business mix allow it to offer insurance products across all business segments. This has enabled Gothaer to become a leading insurance player for SMEs in its home market of Germany. In addition, as part of its push toward digitization, Gothaer was the first insurer in the German market to offer a joint platform for the administration and distribution of life and health insurance, called "ePension." Capitalization will remain sound, supported by retained earnings and a conservative investment strategy. We believe that higher interest rates are helping Gothaer to build capital more sustainably. We consider that the group's improved ability to generate earnings and internal capital--especially for the policyholder bonus reserve--will help it to maintain strong capitalization as per our capital model, despite capital...

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