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 markets, particularly in the SME and commercial segment. We also expect resilient capitalization and robust underwriting profitability over the next 12-24 months, 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's capital adequacy could remain below the 'A' level for a prolonged period, which could happen as a result of aggressive growth, higher

...Gothaer Insurance Group (Gothaer) is set to maintain its significant role in Germany, particularly within the small and midsize enterprise (SME) and commercial segment. In S&P Global Ratings' view, Gothaer's multiline distribution channels and diverse business mix enable it to offer insurance products across all business segments. This has positioned the group as a leading insurance player for SMEs in its German domestic market. In addition, as part of its digitization efforts, 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 the increase in interest rates and underwriting discipline are helping Gothaer sustain its profitability levels. In our view, the group's improved ability to generate earnings and internal capital will help it to recover to strong...

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