AM Best Affirms RenaissanceRe Credit Ratings

July 23, 2022 | 0 Comments

AM Best has affirmed the Financial Strength Rating [FSR] of A+ [Superior] and the Long-Term Issuer Credit Ratings of “aa-” [Superior] of Renaissance Reinsurance Ltd.

The ratings agency said, “The ratings of RenaissanceRe reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and very strong enterprise risk management [ERM].

“AM Best’s assessment of RenaissanceRe’s overall balance sheet strength considers the superior consolidated risk-adjusted capitalization of its ultimate parent, RenaissanceRe Holdings Ltd., which typically maintains significant capital at the holding company level that is available to be down-streamed into its underwriting companies as needed.

“RenaissanceRe’s ratings also benefit from the strength and depth of the company’s management team and ability to deliver strong, long-term profitability over the course of the market cycle. While RenaissanceRe remains a leader in the property catastrophe reinsurance segment, the company has gained significant traction in specialty property/casualty lines, which now comprise more than half of its underwriting premiums.

“RenaissanceRe is also widely recognized for its leadership in ERM, modeling capabilities and as a pioneer in third-party capital management, where it maintains a strong reputation in evaluating risk and effectively deploying capital. As a result, it has attracted capital from outside investors to form several successful joint ventures, including DaVinci, Top Layer Reinsurance Ltd., Vermeer, and most recently, Fontana Holdings L.P., its first third-party reinsurance capital-backed joint venture focused on casualty and specialty risks.

“Partially offsetting these strengths is RenaissanceRe’s exposure to high severity losses associated with global catastrophe events, although the company’s underwriting results and overall operating performance has grown increasingly less volatile, as diversifying business lines have mitigated the impact of catastrophe losses. Looking forward, RenaissanceRe appears well-positioned to benefit from ongoing broad-based pricing improvement in most of its key product lines.”

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