A.M. Best Revises Outlooks to Stable and Affirms Credit Ratings of RenaissanceRe Holdings Ltd.

OLDWICK, N.J.--()--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” of Renaissance Reinsurance Ltd (RenRe) and Renaissance Reinsurance of Europe Unlimited Company (Dublin, Ireland). A.M. Best also has revised the outlooks to stable from negative and affirmed the Long-Term ICR of “a-” and all Long-Term Issue Credit Ratings (Long-Term IR) of RenaissanceRe Holdings Ltd. (RenaissanceRe) [NYSE:RNR]. (Please see below for a list of the Long-Term IRs.)

In addition, A.M. Best has revised the outlook of the Long-Term ICR to stable from negative and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of DaVinci Reinsurance Ltd. (DaVinci). The outlook of the FSR remains stable. A.M. Best also has revised the outlook to stable from negative and affirmed the Long-Term ICR of “bbb+” of DaVinci Re Holdings Ltd.

Concurrently, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” from “a+” for Renaissance Reinsurance U.S. Inc. (RenRe U.S.). A.M. Best also has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” from “a” for RenaissanceRe Specialty U.S. Ltd. (RenRe Specialty U.S. Ltd.) The outlook of these Credit Ratings (ratings) remains stable. The rating upgrades reflect the companies’ strategic importance to the group, their complete integration into RenRe’s operations and the implicit support provided to the companies by their parent.

The ratings of RenRe reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and very strong enterprise risk management (ERM). The ratings 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 (re)insurance cycle. RenRe is widely recognized for its leadership in ERM and as a pioneer in third-party capital management. RenRe remains a leader in property catastrophe 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, include DaVinci and Top Layer Reinsurance Ltd.

Partially offsetting these strengths is RenRe’s exposure to high severity losses associated with catastrophe events around the globe. In addition, the global reinsurance market, and specifically the property catastrophe segment, has experienced overcapacity and pricing pressures over the past few years that in turn has placed pressure on overall returns.

The ratings of DaVinci reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, limited business profile and very strong ERM. The ratings also recognize DaVinci’s solid operating performance over the past several years and the maintenance of its strong risk-adjusted capitalization. DaVinci’s profile is enhanced due to its affiliation to RenRe.

The following Long-Term IRs have been affirmed with the outlooks revised to stable from negative:

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 American Holdings Inc. (guaranteed by RenaissanceRe Holdings Ltd.)—
-- “a-” on $250 million 5.75% senior unsecured notes, due 2020

RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.) –
-- “a-” on $300 million 3.7% senior unsecured notes, due 2025

The following indicative Long-Term IRs under the shelf registration have been affirmed with the outlook revised to stable from negative:

RenaissanceRe Holdings Ltd.—
-- “a-” on senior unsecured
-- “bbb+” on subordinated
-- “bbb” on preferred stock

RenaissanceRe Capital Trust II—
-- “bbb” on trust preferred securities

The following Long-Term IR has been assigned with a stable outlook.

RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.) –
-- “a-” on $300 million 3.45% senior unsecured notes, due 2027

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 © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Mariza Costa, +1-908-439-2200, ext. 5154
Senior Financial Analyst
mariza.costa@ambest.com
or
Steven Chirico, CPA, +1-908-439-2200, ext. 5087
Director
steven.chirico@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
Mariza Costa, +1-908-439-2200, ext. 5154
Senior Financial Analyst
mariza.costa@ambest.com
or
Steven Chirico, CPA, +1-908-439-2200, ext. 5087
Director
steven.chirico@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