The ratings on Gothaer Allgemeine Versicherung AG (GA) and Gothaer Lebensversicherung AG (GL) reflect their roles as core operating entities within the Germany-based Gothaer insurance group (Gothaer). Factors supporting the ratings are the group's continued strong non-life underwriting discipline and strong and improving capitalization based on recovering earnings and capital measures, as well as strong management commitment to value-based management principles. These strengths are partially offset by the still weaker, although recovering, profile of GL. In addition, Gothaer's distribution initiative has yet to translate into a sustained track record of profitable growth, particularly in life insurance. Gothaer's strong commitment to non-life underwriting discipline is expected to continue in a softening market environment, and was reflected in a strong net combined
