A.M. Best Affirms Ratings of RenaissanceRe Holdings Ltd. and Its Affiliates

A.M. Best Affirms Ratings of RenaissanceRe Holdings Ltd. and Its Affiliates

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and 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. 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. In addition, A.M. Best has assigned an FSR of A (Excellent) and an ICR of "a" to RenaissanceRe Specialty U.S. Ltd. (RenRe Specialty US). 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 as a thought and practice leader in enterprise risk management (ERM). In that regard, 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 maintenance of its strong risk-adjusted capitalization. DaVinci's profile is enhanced due to its affiliation with RenRe.

The ratings assigned to RenRe Specialty US acknowledge its strong risk-adjusted capitalization, sound business plans and strategic business positioning for writing specialty risks. The ratings are enhanced based on explicit support including substantial internal reinsurance agreements. In addition, RenRe Specialty US' profile is enhanced due to its affiliation and branding as a RenRe company, and it is expected that it will be risk-managed in a similar fashion.

Offsetting these strengths is that as an organization, RenRe 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 expectation 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 $300 million 6.6% Series D 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, visitwww.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Greg Reisner
Managing Senior Financial Analyst
908-439-2200, ext. 5224
Peter Dickey
Assistant Vice President
908-439-2200, ext. 5053
Rachelle Morrow
Senior Manager, Public Relations
908-439-2200, ext. 5378
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644

KEYWORDS:   United States  Bermuda  Europe  North America  Caribbean  New Jersey  Ireland


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