AM Best Removes from Under Review With Developing Implications & Affirms Credit Ratings of RenaissanceRe Holdings Ltd & Its M...
March 22 2019 - 1:58PM
Business Wire
AM Best has removed under review with developing
implications and affirmed the Financial Strength Rating (FSR) of A+
(Superior) and the Long Term Issuer Credit Ratings (Long-Term ICR)
of “aa-” of Renaissance Reinsurance Ltd. (RenaissanceRe),
Renaissance Reinsurance U.S. Inc. (RenaissanceRe U.S.),
RenaissanceRe Specialty U.S. Ltd. (RenaissanceRe Specialty U.S.
Ltd.), and Renaissance Reinsurance of Europe Unlimited Company
(Dublin, Ireland). Additionally, AM Best has removed from under
review with developing implications and affirmed the Long-Term ICR
of “a-” and most Long-Term Issuer Credit Ratings (Long-Term IR) of
RenaissanceRe Holdings Ltd [NYSE: RNR]. Concurrently, the Credit
Ratings (ratings) of Tokio Millennium Re AG (Zurich, Switzerland)
(to be renamed RenaissanceRe Europe AG) have been aligned with the
entities of RenaissanceRe and, as such, have been removed from
under review with developing implications and affirmed the FSR of
A+ (Superior) and the Long-Term ICR of “aa-”. The outlook assigned
to these ratings is stable.
AM Best also has removed from under review with developing
implications and affirmed the FSR of A (Excellent) and the
Long-Term ICR of “a+” of DaVinci Reinsurance Ltd. (DaVinci) and the
Long-Term ICR of “bbb+” of DaVinciRe Holdings Ltd. The outlook
assigned to these ratings is stable. Concurrently, AM Best has
affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of
Vermeer Reinsurance Ltd (Vermeer). The outlook of these ratings is
stable. All aforementioned companies are domiciled in Bermuda
unless otherwise specified. (See below for a detailed listing of
the Long-Term IRs.)
The ratings of RenaissanceRe reflect the group’s balance sheet
strength, which AM Best categorizes as strongest, as well as its
adequate operating performance, favorable business profile and very
strong enterprise risk management (ERM).
The ratings of DaVinci reflect its balance sheet strength, which
AM Best categorizes as very strong, as well as its adequate
operating performance, neutral 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
very strong risk-adjusted capitalization. DaVinci’s profile is
enhanced due to its affiliation to RenaissanceRe.
The ratings reflect Vermeer’s balance sheet strength, which AM
Best categorizes as very strong, as well as its adequate operating
performance, neutral business profile and very strong ERM.
The ratings of RenaissanceRe 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 market cycle.
RenaissanceRe is widely recognized for its leadership in ERM and as
a pioneer in third-party capital management. RenaissanceRe 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, including DaVinci, Top Layer Reinsurance
Ltd. and Vermeer.
Partially offsetting these strengths is RenaissanceRe’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 following Long-Term IR has been assigned with a stable
outlook:
RenaissanceRe Holdings Ltd.— “bbb” on $250 million 5.75%
non-cumulative fixed rate Series F perpetual preferred stock
The following Long-Term IRs have been removed from under review
with developing implications and affirmed with a stable outlook
assigned:
RenaissanceRe Holdings Ltd.— “bbb” on $250 million 6.08% Series
C perpetual preferred stock ($125 million outstanding)— “bbb” on
$275 million 5.375% non-cumulative 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—
“a-” on $300 million 3.45% senior unsecured notes, due 2027
The following indicative Long-Term IRs under the shelf
registration have been removed from under review with developing
implications and affirmed with a stable outlook assigned:
RenaissanceRe Holdings Ltd.— “a-” on senior unsecured— “bbb+” on
subordinated— “bbb” on preferred stock
RenaissanceRe Capital Trust II— “bbb” on trust preferred
securities
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 Understanding Best’s Credit Ratings. For
information on the proper media use of Best’s Credit Ratings and AM
Best press releases, please view Guide for Media - Proper
Use of Best’s Credit Ratings and AM Best Rating Action Press
Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20190322005415/en/
Mariza CostaSenior Financial Analyst+1 908 439
2200, ext. 5154mariza.costa@ambest.comRobert
DeRoseSenior Director+1 908 439 2200, ext.
5453robert.derose@ambest.comChristopher
SharkeyManager, Public Relations+1 908 439 2200, ext.
5159christopher.sharkey@ambest.comJim PeavyDirector,
Public Relations+1 908 439 2200, ext.
5644james.peavy@ambest.com
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