AM Best Affirms Credit Ratings of General Reinsurance Corporation and Its Subsidiaries
May 02 2024 - 2:42PM
Business Wire
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 General Reinsurance
Corporation (headquartered in Stamford, CT) and its core
property/casualty (P/C) and life (re)insurance subsidiaries
operating in the United States and internationally. These companies
collectively are known as General Re Group (Gen Re). (Please see
below for a detailed listing of these companies and Credit Ratings
[ratings].) In addition, AM Best has affirmed the Long-Term ICR of
“aa+” (Superior) of General Re Corporation (Delaware). The outlook
of these Credit Ratings (ratings) is stable.
The ratings reflect Gen Re’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.
Gen Re has a global footprint with a well-diversified platform
by geography and product offerings, including an international
reach in the P/C and life (re)insurance business segments. This
diversification is reflected in the stability of the group’s
underwriting results and overall operating performance during
periods when the reinsurance industry is impacted by unusually high
catastrophe losses. Gen Re’s favorable operating performance in
2023 reflects the benefit of overall favorable market conditions in
the P/C reinsurance space, as well as lower catastrophe losses
during the period. Gen Re’s life (re)insurance operations also made
a solid contribution to earnings in 2023. AM Best expects that Gen
Re’s overall operating performance should remain solidly supportive
of its current assessment for the foreseeable future. The group’s
relatively high allocation to equity investments presents
occasional investment-related earnings volatility, but the
long-term performance of the group’s investment portfolio is
strong.
Gen Re’s platform is supported by consistently superior
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), which has supported its steady operating
performance over time. Favorable operating results and a rebound in
investment valuations led to strong capital appreciation in 2023,
despite the payment of a $1.1 billion dividend to Gen Re’s publicly
traded parent, Berkshire Hathaway Inc. [NYSE: BRK.A and BRK.B]. Gen
Re also maintains an extensive risk management program that
oversees all aspects of risk throughout its worldwide operations.
These positive rating attributes are enhanced further as a result
of Gen Re being a wholly owned subsidiary of Berkshire Hathaway,
providing additional financial flexibility and investment
expertise.
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+”
(Superior) have been affirmed for General Reinsurance Corporation
and its following core P/C and life (re)insurance subsidiaries:
- General Re Life Corporation
- General Reinsurance Australia Ltd.
- General Reinsurance Life Australia Ltd.
- General Reinsurance AG
- General Reinsurance Africa Ltd.
- General Star Indemnity Company
- General Star National Insurance Company
- Genesis Insurance Company
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions,
please view Guide to Best's Credit Ratings. For
information on the proper use of Best’s Credit Ratings, Best’s
Performance Assessments, Best’s Preliminary Credit Assessments and
AM Best press releases, please view Guide to Proper Use of
Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Gregory Dickerson Director +1 908 882 1737
gregory.dickerson@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Carolos Wong-Fupuy Senior Director +1 908 882
2438 carlos.wong-fupuy@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com