Gothaer's capital position is improving, supported by solid retained earnings from its diversified business profile, an ongoing portfolio shift to less capital-intensive products, and balance sheet de-risking. However, this improvement is very recent and the group still lacks the track record of higher-rated peers. We are therefore affirming our 'A-' ratings on Gothaer's rated core subsidiaries. The outlook is positive based on the potential for the group's capital position to consolidate at very strong levels, while investment portfolio risks stabilize at current levels. On Sept. 24, 2019, S&P Global Ratings affirmed its 'A-' long-term insurer financial strength and issuer credit ratings on the core subsidiaries of Germany-domiciled Gothaer insurance group. The outlook was also revised to positive from stable. The
