A.M. Best Revises Outlooks to Stable and Affirms Credit Ratings of RenaissanceRe Holdings Ltd.
March 01 2018 - 10:07AM
Business Wire
A.M. Best has revised the outlooks to stable from
negative and affirmed the Financial Strength Rating (FSR) of A+
(Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR)
of “aa-” of Renaissance Reinsurance Ltd (RenRe) and
Renaissance Reinsurance of Europe Unlimited Company (Dublin,
Ireland). A.M. Best also has revised the outlooks to stable from
negative and affirmed the Long-Term ICR of “a-” and all Long-Term
Issue Credit Ratings (Long-Term IR) of RenaissanceRe Holdings
Ltd. (RenaissanceRe) [NYSE:RNR]. (Please see below for a list
of the Long-Term IRs.)
In addition, A.M. Best has revised the outlook of the Long-Term
ICR to stable from negative and affirmed the FSR of A (Excellent)
and the Long-Term ICR of “a+” of DaVinci Reinsurance Ltd.
(DaVinci). The outlook of the FSR remains stable. A.M. Best also
has revised the outlook to stable from negative and affirmed the
Long-Term ICR of “bbb+” of DaVinci Re Holdings Ltd.
Concurrently, A.M. Best has upgraded the FSR to A+ (Superior)
from A (Excellent) and the Long-Term ICR to “aa-” from “a+” for
Renaissance Reinsurance U.S. Inc. (RenRe U.S.). A.M. Best
also has upgraded the FSR to A+ (Superior) from A (Excellent) and
the Long-Term ICR to “aa-” from “a” for RenaissanceRe Specialty
U.S. Ltd. (RenRe Specialty U.S. Ltd.) The outlook of these
Credit Ratings (ratings) remains stable. The rating upgrades
reflect the companies’ strategic importance to the group, their
complete integration into RenRe’s operations and the implicit
support provided to the companies by their parent.
The ratings of RenRe reflect its balance sheet strength, which
A.M. Best categorizes as strongest, as well as its adequate
operating performance, favorable business profile and very strong
enterprise risk management (ERM). The ratings also reflect its
superior level of risk-adjusted 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
(re)insurance cycle. RenRe is widely recognized for its leadership
in ERM and as a pioneer in third-party capital management. RenRe
remains a leader in property catastrophe and maintains a strong
reputation in evaluating risk and effectively deploying capital and
as such has attracted capital from outside investors to form
several successful joint ventures, include DaVinci and Top Layer
Reinsurance Ltd.
Partially offsetting these strengths is RenRe’s exposure to high
severity losses associated with catastrophe events around the
globe. In addition, the global reinsurance market, and specifically
the property catastrophe segment, has experienced overcapacity and
pricing pressures over the past few years that in turn has placed
pressure on overall returns.
The ratings of DaVinci reflect its balance sheet strength, which
A.M. Best categorizes as strongest, as well as its adequate
operating performance, limited business profile and very strong
ERM. The ratings also recognize DaVinci’s solid operating
performance over the past several years and the maintenance of its
strong risk-adjusted capitalization. DaVinci’s profile is enhanced
due to its affiliation to RenRe.
The following Long-Term IRs have been affirmed with the outlooks
revised to stable from negative:
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 American Holdings Inc. (guaranteed by
RenaissanceRe Holdings Ltd.)—-- “a-” on $250 million 5.75%
senior unsecured notes, due 2020
RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe
Holdings Ltd.) –-- “a-” on $300 million 3.7% senior unsecured
notes, due 2025
The following indicative Long-Term IRs under the shelf
registration have been affirmed with the outlook revised to stable
from negative:
RenaissanceRe Holdings Ltd.—-- “a-” on senior unsecured--
“bbb+” on subordinated-- “bbb” on preferred stock
RenaissanceRe Capital Trust II—-- “bbb” on trust
preferred securities
The following Long-Term IR has been assigned with a stable
outlook.
RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe
Holdings Ltd.) –-- “a-” on $300 million 3.45% senior unsecured
notes, due 2027
This press release relates to Credit Ratings that have been
published on A.M. 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 A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20180301005966/en/
A.M. BestMariza Costa, +1-908-439-2200, ext.
5154Senior Financial
Analystmariza.costa@ambest.comorSteven Chirico, CPA,
+1-908-439-2200, ext.
5087Directorsteven.chirico@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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