Ratings Agency Upgrade For PartnerRe
A.M. Best Co. this week [May 16] revised the outlook to stable from negative and affirmed the financial strength rating [FSR] of A+ [Superior] and issuer credit ratings (ICR) of “aa-” of Bermuda-based Partner Reinsurance Company Ltd. and its affiliates.
A.M. Best also has revised the outlook to stable from negative and affirmed the ICR of “a-” and debt ratings of its parent, PartnerRe Ltd. (Hamilton, Bermuda) (NYSE: PRE).
Concurrently, A.M. Best has upgraded the FSR to A [Excellent] from A- [Excellent] and the ICR to “a+” from “a-” of PartnerRe America Insurance Company. The outlook for both ratings has been revised to stable from negative. PartnerRe America has been strategically repositioned to write accident and health business and is supported by a substantial quota share agreement with an affiliate.
The ratings and revised outlook of PartnerRe Ltd. and its subsidiaries reflect the group’s strong risk-adjusted capitalisation, strong business profile as a truly global reinsurance organization and solid 2012 operating performance, which demonstrates its ability to deliver results that are amongst the top of its peers.
“While the 2011 performance dampened long-term averages and brought focus on the company’s enterprise risk management (ERM) processes, A.M. Best remains confident that PartnerRe Ltd. retains the capability and expertise to write a diverse book of business in various global geographies that will drive superior on-going profitability,” said a spokesman for the ratings agency.
Factors that could result in a downgrading of the ratings and/or a revision of the outlook to negative include unfavorable operating results relative to the market or an altered view of the organization’s ERM capability and/or a material decline in risk-adjusted capital.
Factors that could lead to an upgrading of the ratings and/or a revision of the outlook to positive would be consistent, long-term operating profitability coupled with maintenance of strong risk-adjusted capital.
Incorporated in Bermuda in 1993, PartnerRe Ltd. is the ultimate holding company for its international reinsurance group.
