A.M. Best Co. removed from under review with negative implications and assigned a negative outlook to the financial strength rating of A+ [Superior] and issuer credit ratings of “aa-” of Bermuda based Partner Reinsurance Company Ltd. and its affiliates. A.M. Best also has removed from under review with negative implications and assigned a negative outlook to the ICR of “a-” and debt ratings of its parent, PartnerRe Ltd.
A statement said,”The negative outlook reflects PartnerRe’s 2011 financial performance, which was not in line with other Superior-rated companies and below A.M. Best’s expectations. While one year’s operating performance does not indicate a trend, the accumulation of catastrophe losses experienced by PartnerRe in 2011 has strained average historical profitability measures.
“A.M. Best believes that PartnerRe has a solid risk management framework that identifies and measures risks to its organization. However, as for the crucial component of managing risk, A.M.
“Best believes that PartnerRe’s mitigation of risk to an outsized market loss during the integration of the acquired PARIS RE portfolio was contemplated, and accepted by the company, but represented a risk appetite that led to greater earnings volatility as compared to prior years and similarly rated peers.”