AM Best Affirms Credit Ratings of Delvag Versicherungs-AG
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Delvag Versicherungs-AG (Delvag) (Germany). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Delvag’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Delvag is the captive insurer for Deutsche Lufthansa Aktiengesellschaft (Lufthansa), a global aviation group domiciled in Germany.
The captive’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the captive’s prospective risk-adjusted capitalisation to be maintained at the strongest level and be supported further by a profit and loss absorption agreement with Lufthansa, which provides Delvag with added balance sheet protection. The balance sheet strength assessment also factors in Delvag’s conservative and prudent reserving practices, as well as its good liquidity profile. A partly offsetting factor is Delvag’s moderately high dependence on reinsurance to protect its aviation fleet business. However, the associated credit risk is mitigated by the use of a financially strong and diverse reinsurance panel.
