AM Best Affirms Credit Ratings of RenaissanceRe Holdings Ltd. and Its Main Subsidiaries
May 13 2020 - 11:04AM
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-” of Renaissance Reinsurance Ltd. (RenaissanceRe),
Renaissance Reinsurance U.S. Inc. (Maryland), RenaissanceRe
Specialty U.S. Ltd., Renaissance Reinsurance of Europe Unlimited
Company (Dublin, Ireland) and RenaissanceRe Europe AG (Zurich,
Switzerland) (formally named Tokio Millennium Re AG). Additionally,
AM Best has affirmed the Long-Term ICR of “a-” and Long-Term Issue
Credit Ratings (Long-Term IR) of RenaissanceRe Holdings Ltd. [NYSE:
RNR]. AM Best also has 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. 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
Credit Ratings (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 company’s ability
to maintain a very strong risk-adjusted capitalization. DaVinci’s
profile is enhanced due to its affiliation to RenaissanceRe.
The ratings of Vermeer 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 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,
modeling capabilities and as a pioneer in third-party capital
management. RenaissanceRe remains a leader in the property
catastrophe reinsurance segment 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 global catastrophe events.
In addition, the global reinsurance market, and specifically the
property catastrophe segment, has experienced overcapacity and
pricing pressures over the past few years, which in turn has placed
pressure on overall returns.
RenaissanceRe indicated that during first-quarter 2020 it had
net claims and claim expenses of $104 million associated with the
COVID-19 pandemic, which primarily represents IBNR related to
exposures such as event contingency and event-based casualty
covers. Currently, AM Best considers these losses manageable given
RenaissanceRe’s limited profile in classes that are expected to be
most impacted. AM Best will continue to monitor the situation with
the COVID-19 pandemic and possible loss development for
RenaissanceRe and the industry.
The following Long-Term IRs have affirmed with a stable
outlook:
RenaissanceRe Holdings Ltd. -- “bbb” on $275 million 5.375%
non-cumulative Series E perpetual preferred stock -- “bbb” on $250
million 5.75% non-cumulative fixed rate Series F perpetual
preferred stock
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 affirmed with a stable outlook:
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 Guide to 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 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 New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Mariza Costa Associate Director +1 908 439
2200, ext. 5154 mariza.costa@ambest.com
Robert DeRose Senior Director +1 908 439 2200,
ext. 5453 robert.derose@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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