AM Best Affirms PartnerRe’s Credit Ratings
AM Best affirms PartnerRe’s A+ [Superior] financial strength and stable outlook, reflecting solid underwriting performance and strong balance sheet strength.
The ratings agency said, “AM Best has affirmed the Financial Strength Rating [FSR] of A+ [Superior] and the Long-Term Issuer Credit Ratings [Long-Term ICR] of “aa-” [Superior] of the operating subsidiaries of PartnerRe Ltd. [collectively referred to as PartnerRe]. Concurrently, AM Best has affirmed the Long-Term ICR of “a-” [Excellent] of PartnerRe Ltd. [Pembroke, Bermuda]. The outlook of these Credit Ratings [ratings] is stable.
“The ratings reflect PartnerRe’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management.
“The rating affirmations reflect PartnerRe’s excellent level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR], which has consistently remained supportive of the group’s overall balance sheet strength assessment of strongest. In each of the past two calendar years, PartnerRe reported material reserve strengthening related to its U.S. casualty business consistent with industry trends, although the impact of this adverse development has been mitigated by strong performance in other areas. As a result, PartnerRe’s underwriting performance has been consistently solid for several consecutive years, including significant earnings contributions from both non-life and life/health operating segments. Underwriting profits have been complemented by strong overall investment returns, leading to robust growth in shareholder’s equity for the past three calendar years, even after significant dividend payments made to PartnerRe’s parent company over this time frame.”
