OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of General Reinsurance Corporation (headquartered in Stamford, CT) and its core property/casualty and life reinsurance/insurance subsidiaries operating in the United States and internationally. These companies are collectively known as the General Re Group (Gen Re). In addition, A.M. Best has affirmed the Long-Term ICR of “aa+” of General Re Corporation. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of these companies and ratings.)
The ratings reflect Gen Re’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management. Gen Re has an operating platform that is well-diversified by geography and product, including property/casualty and life business segments with worldwide market profiles. This platform is supported by consistently superior risk-based capitalization, which has delivered consistent operating performance over time. Gen Re also maintains an extensive risk management program that oversees all aspects of risk throughout its worldwide operations. These positive rating attributes are enhanced by the support provided by Gen Re’s ultimate parent, Berkshire Hathaway Inc. (Berkshire), and the reinsurance coverages provided by Berkshire affiliates, National Indemnity Company (National Indemnity) and Columbia Insurance Company (CIC), both with an FSR of A++ (Superior). The Berkshire relationship provides Gen Re with access to greater financial flexibility and investment expertise. Also worth noting is that in 2016, Gen Re entered into a reinsurance facility agreement with an unaffiliated third party in order to access property/casualty treaty broker market business in the United States and Canada.
Gen Re’s life operations primarily consist of individual life insurance and accident and health reinsurance lines of business. The life operations have grown in recent years and the investment portfolio has performed well. Partially offsetting these strengths are the continued losses in the long-term care line of business. The life operations are expected to remain an important source of income and diversification for Gen Re.
Negative rating actions could occur if Gen Re’s operating performance and risk-adjusted capitalization consistently fall below A.M. Best’s expectations for its current rating level for a prolonged period.
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed for General Reinsurance Corporation and its following core property/casualty and life reinsurance/ insurance subsidiaries:
- General Re Life Corporation
- General Reinsurance Australia Ltd
- General Reinsurance Life Australia Ltd.
- General Reinsurance AG
- General Reinsurance Africa Ltd.
- General Star Indemnity Company
- General Star National Insurance Company
- Genesis Insurance Company
The FSR of A- (Excellent) and the Long-Term ICR of “a-” have been affirmed with a stable outlook for IdeaLife Insurance Company (Stamford, CT), a subsidiary of General Re Life Corporation.
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.
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