AM Best Affirms Credit Ratings Of PartnerRe

May 16, 2020 | 0 Comments

AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating [FSR] of A+ [Superior] and Long-Term Issuer Credit Rating [Long-Term ICR] of “aa-” of the operating subsidiaries of PartnerRe Ltd.

The ratings agency said, “Concurrently, AM Best has also removed from under review with developing implications and affirmed the Long-Term ICR of “a-” of PartnerRe Ltd. [Pembroke, Bermuda] and its existing Long-Term Issue Credit Ratings [Long-Term IR]. The outlook assigned to these Credit Ratings [ratings] is stable.

“The ratings reflect PartnerRe’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management.

“This Credit Rating [rating] action follows the announcement that EXOR N.V. [EXOR], PartnerRe’s parent, and Covéa Coopérations [Covea] will not go forward with their announced transaction under which Covea would have acquired EXOR’s outstanding common shares of PartnerRe Ltd. PartnerRe’s ratings will be assessed in the coming months as part of its annual review process, which will further incorporate an evaluation of ownership structure, evolving reinsurance market conditions and the economic implications caused by the COVID-19 pandemic.

“Rating factors that could lead to positive rating actions would be continued successful build-out of PartnerRe’s operating companies’ distribution platforms in conjunction with long-term, consistently strong operating profitability and maintaining the strongest levels of risk-adjusted capitalization.

“Rating factors that could lead to negative rating actions include a deterioration in the company’s business profile, unfavorable operating results stemming from outsized insurance or investment losses, and a material decline of risk-adjusted capitalization.

“AM Best has removed from under review with developing implications and assigned a stable outlook to the FSR of A+ [Superior] and Long-Term ICR of “aa-” of the operating subsidiaries of PartnerRe Ltd.:

  • Partner Reinsurance Company Ltd.
  • Partner Reinsurance Company of the U.S.
  • PartnerRe Ireland Insurance Designated Activity Company
  • Partner Reinsurance Europe SE
  • PartnerRe America Insurance Company
  • PartnerRe Life Reinsurance Company of Canada
  • PartnerRe Life Reinsurance Company of America

“The following Long-Term IRs have been removed from under review with developing implications and assigned a stable outlook:

PartnerRe Ltd.—
— “bbb” on $250 million 5.875% preferred shares, Series F

PartnerRe Financial II, Inc.—
— “bbb” on $250 million 6.44% junior subordinated capital efficient notes, due 2066.”

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