OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the 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. In addition, A.M. Best has affirmed the FSR of A (Excellent) and the ICR of “a” of RenaissanceRe Specialty U.S. Ltd. (RenRe Specialty US). 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. 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 for its thought leadership in enterprise risk management (ERM) and is a pioneer in third party capital management. 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 of RenRe Specialty Risks Ltd. and RenRe Specialty US acknowledge their strong risk-adjusted capitalization, sound business plans and strategic business positioning for writing specialty risks. The ratings are enhanced based on both implicit and explicit support. In addition, RenRe Specialty Risks Ltd and RenRe Specialty US’ profiles are enhanced due to their affiliation and branding as RenRe companies.
These strengths are somewhat offset since RenRe as an organization 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 expectations 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 $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.
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