|[July 02, 2014]
A.M. Best Affirms Ratings of RenaissanceRe Holdings Ltd. and Its Affiliates
OLDWICK, N.J. --(Business Wire)--
A.M. Best has affirmed the financial strength rating (FSR) of A+
(Superior) and the issuer credit ratings (ICR) of "aa-" of Renaissance
Reinsurance Ltd. (RenRe) and Renaissance Reinsurance of Europe
(Dublin, Ireland). A.M. Best also has affirmed the ICR of "a-" and all
debt ratings of RenaissanceRe Holdings Ltd. (RenaissanceRe)
[NYSE: RNR] and the FSR of A (Excellent) and ICRs of "a" of RenaissanceRe
Specialty Risks Ltd. In addition, A.M. Best has affirmed the FSR of
A (Excellent) and the ICR of "a" of RenaissanceRe Specialty U.S. Ltd.
(RenRe Specialty US). Concurrently, A.M. Best has affirmed the FSR of A
(Excellent) and the ICR of "a+" of DaVinci Reinsurance Ltd.
(DaVinci) as well as the ICR of "bbb+" of DaVinci Re Holdings Ltd.
The outlook for all ratings is stable. All aforementioned companies are
domiciled in Bermuda, unless otherwise specified. (See below for a
detailed listing of the debt ratings.)
The rating actions reflect RenRe's superior level of risk-based
capitalization, the strength and depth of its management team and the
ability of the company to deliver strong long-term profitability over
the course of the insurance cycle. The company is widely recognized for
its thought leadership in enterprise risk management (ERM) and is a
pioneer in third party capital management. RenRe maintains its superior
market reputation as a leader in state-of-the-art property catastrophe
modeling and risk optimization, which has attracted capital from outside
investors to form several successful joint ventures including DaVinci
and Top Layer Reinsurance Ltd.
The ratings of DaVinci recognize its solid operating performance over
the last several years and the maintennce of its strong risk-adjusted
capitalization. DaVinci's profile is enhanced due to its affiliation
The ratings of RenRe Specialty Risks Ltd. and RenRe Specialty US
acknowledge their strong risk-adjusted capitalization, sound business
plans and strategic business positioning for writing specialty risks.
The ratings are enhanced based on both implicit and explicit support. In
addition, RenRe Specialty Risks Ltd and RenRe Specialty US' profiles are
enhanced due to their affiliation and branding as RenRe companies.
These strengths are somewhat offset since RenRe as an organization is
exposed to high severity losses associated with catastrophic events on a
worldwide basis. However, losses have historically been within stated
risk tolerances and A.M. Best's expectations.
Factors that could lead to a revision of the outlook to positive or an
upgrading of the companies' ratings include continued, long-term
favorable operating profitability relative to peers and maintenance of
strong risk-adjusted capital levels. Factors that could cause a revision
of the outlook to negative or a downgrading of the ratings include
unfavorable operating profitability trends, outsized catastrophe or
investment losses relative to peers and/or A.M. Best's expectations that
may result in an alternate view of ERM, a decline in the level of
parental or organizational commitment, significant adverse loss reserve
development and/or a material decline in risk-adjusted capitalization.
The following debt ratings have been affirmed:
RenaissanceRe Holdings Ltd.-
- "bbb" on $250 million 6.08% Series C perpetual preferred stock
- "bbb" on $275 million 5.375% Series E perpetual preferred stock
RenaissanceRe North America Holdings Inc.-(guaranteed by
RenaissanceRe Holdings Ltd.)
- "a-" on $250 million 5.75% senior unsecured notes, due 2020
The following indicative shelf debt ratings have been affirmed:
RenaissanceRe Holdings Ltd.-
- "a-" on senior unsecured
- "bbb+" on subordinated
- "bbb" on preferred stock
RenaissanceRe Capital Trust II-
- "bbb" on trust preferred securities
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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