A.M. Best Affirms Credit Ratings of PartnerRe Ltd and Its Subsidiaries

OLDWICK, N.J.--()--A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of Partner Reinsurance Company Ltd. and its affiliates (collectively referred to as PartnerRe). A.M. Best has also affirmed the Long-Term ICR of “bbb+” of PartnerRe Ltd and its existing Long-Term Issue Credit Ratings (Long-Term IR). The outlook of these Credit Ratings (ratings) is stable. PartnerRe Ltd and PartnerRe are domiciled in Hamilton, Bermuda. (See below for a detailed list of the companies and ratings.)

The ratings reflect PartnerRe’s strong risk-adjusted capitalization, well diversified book of business, global business profile and earnings capacity. Also reflected in the ratings is the recent stability afforded to PartnerRe under its new owner, EXOR N.V.

PartnerRe maintains a highly diversified book of reinsurance business across both non-life and life lines of business, as well as a balanced geographic spread of risk. A.M. Best still has some lingering concerns about PartnerRe’s focus on reinsurance due to the very challenging market conditions. However, A.M. Best believes that PartnerRe’s current focus to build out of life and health operations could provide additional diversification to offset those challenges. Under EXOR N.V. ownership, A.M. Best believes that PartnerRe’s financial flexibility will be maintained as it still has access to the capital markets on a stand-alone basis, as well as potentially through EXOR N.V., which is a publicly traded company in Italy. Additionally, PartnerRe maintains a strong risk management infrastructure that is embedded throughout the organization with clearly delineated roles and responsibilities. Such an infrastructure is needed given the level of complexity of the group’s risk profile.

PartnerRe’s overall earnings in recent years have been impacted by several non-operating activities. The group’s consistently strong reserve releases have served as ballast for those expenses, as well as the continued challenging reinsurance market conditions.

Rating factors that could lead to a positive outlook or rating upgrade would be successful build out of its distribution platforms, long-term consistently strong operating profitability and maintaining excellent risk-adjusted capital levels through various market conditions. Rating factors that could lead to a negative outlook or a downgrade include unfavorable operating results, outsized insurance or investment losses or a significant decline in risk-adjusted capital to a level that no longer supports the current ratings.

The FSR of A (Excellent) and Long-Term ICR of “a+” of Partner Reinsurance Company Ltd. and its affiliates have been affirmed with stable outlook:

  • Partner Reinsurance Company of the U.S.
  • PartnerRe Insurance Company of New York
  • PartnerRe Ireland Insurance Designated Activity Company
  • Partner Reinsurance Europe SE
  • PartnerRe America Insurance Company

Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” of PartnerRe Life Reinsurance Company of Canada (Toronto, Ontario) (formerly Aurigen Reinsurance Company), PartnerRe Life Reinsurance Company of America (Little Rock, AR) (formerly Aurigen Reinsurance Company of America) and Aurigen Reinsurance Limited (Bermuda). The outlook of the FSR is stable, while the outlook of the Long-Term ICRs is positive.

The following Long-Term IRs have been affirmed with a stable outlook:

PartnerRe Ltd
— “bbb-” on $250 million 5.875% preferred shares, Series F

PartnerRe Finance B LLC
— “bbb+” on $500 million 5.5% senior unsecured notes, due 2020

PartnerRe Financial II, Inc.
— “bbb-” on $250 million 6.44% junior subordinated capital efficient notes, due 2066

The following indicative Long-Term IRs under the shelf registration have been affirmed with a stable outlook:

PartnerRe Ltd
— “bbb+” on senior unsecured debt
— “bbb” on subordinated debt
— “bbb-” on preferred stock

PartnerRe Financial II, Inc. (guaranteed by PartnerRe Ltd)—
— “bbb+” on senior unsecured debt
— “bbb” on subordinated debt
— “bbb-” on preferred stock

PartnerRe Capital Trust II and III (guaranteed by PartnerRe Ltd)—
— “bbb” on trust preferred securities

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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Scott Mangan, +1 908 439 2200, ext. 5593
Senior Financial Analyst—P/C
scott.mangan@ambest.com
or
Bruno Caron, +1 908 439 2200, ext. 5144
Financial Analyst—L/H
bruno.caron@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Scott Mangan, +1 908 439 2200, ext. 5593
Senior Financial Analyst—P/C
scott.mangan@ambest.com
or
Bruno Caron, +1 908 439 2200, ext. 5144
Financial Analyst—L/H
bruno.caron@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com