AM Best confirms Notes Euler Hermes Insurance Company of North America

        The ratings reflect its strong risk-adjusted capitalization NA Euler Hermes, a leading position in the market as the largest claims insurer in the United States and its management practices, the great danger that the impact of tempered financial crisis on the operating results of the company. The notes also reflect the support provided by parents NA Euler Hermes Euler Hermes SA (France) intermediate and ultimate parent company Allianz Societas Europaea organization (Allianz SE) (Germany). This support includes the protection of reinsurance, infrastructure integration, enhanced marketing capabilities and financial flexibility.

These positive rating factors are offset by lower operating results, Euler Hermes NA in recent years, including 2008, 2009 and 2011, reflecting the increase in losses, delinquencies and bankruptcies through crisis global financial crisis. In addition, the development of negative reserve was experienced in accident years, but the loss reserve development trends have improved significantly recently. In addition, the growth of the Euler Hermes NA surplus by the amount of dividends paid to shareholders in the last five years has been limited.

Future positive rating actions may result Euler Hermes NA outperforms its competitors over a longer period. However, negative rating actions could occur if the operating performance of the company is significantly below expectations, if there is a significant deterioration in risk-adjusted capitalization, or if there is a reduction of strategic importance to the company of Allianz SE.

The process of determining these ratings is used, Best Credit Rating Methodology, which provides a comprehensive explanation of AM Best's rating process and contains the various evaluation criteria used in the evaluation.