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 ICR of “a” of Glencoe
Insurance Ltd.(Bermuda). Concurrently, A.M. Best has affirmed the
FSR of A (Excellent) and upgraded the ICR to “a+” from “a” of DaVinci
Reinsurance Ltd.(DaVinci) and upgraded the ICR to “bbb+” from “bbb”
of DaVinci Re Holdings Ltd. The outlook for all ratings is stable.
The rating actions reflect RenRe’s superior level of risk-based
capitalization, the strength and depth of its management team and the
company’s ability to deliver strong returns over the course of the
cycle. In addition, the company is widely recognized as a leader in
enterprise risk 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
companies to form several successful joint ventures including DaVinci
and Top Layer Reinsurance Ltd.
The upgrading of DaVinci’s ICR of reflects its solid operating
performance over the last several years and maintenance of strong
risk-adjusted capital. While 2011 was a challenging year for DaVinci as
well as the rest of the reinsurance sector due to the numerous global
catastrophes, losses were well within expectations. DaVinci’s profile is
enhanced due to its affiliation with RenRe.
Offsetting these strengths is RenRe’s exposure to high severity losses
associated with catastrophic events on a worldwide basis, as is the case
with the 2011 catastrophes. However, losses were within stated risk
tolerances and A.M. Best’s expectations. RenRe and DaVinci were
well-positioned going into the January 2012 renewals.
For the rated operating companies above, factors that could lead to a
revision of the outlook to positive or an upgrading of the 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 in 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, a decline in the level of parental or
organizational commitment, significant adverse loss reserve development
and/or a material decline in risk adjusted capital.
The following debt ratings have been affirmed:
RenaissanceRe Holdings Ltd.—
-- “a-” on $100 million 5.875% senior unsecured notes, due 2013
-- “bbb” on $250 million 6.08% Series C perpetual preferred stock
-- “bbb” on 300 million 6.6% Series D 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. Key criteria
utilized include: “Risk Management and the Rating Process for Insurance
Companies”; “Understanding Universal BCAR for Property/Casualty
Insurers”; “Catastrophe Analysis in A.M. Best Ratings”; “Insurance
Holding Company and Debt Ratings”; and “Rating Members of Insurance
Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
A.M. Best Co.
Greg Reisner
Senior Financial
Analyst
908-439-2200, ext. 5224
greg.reisner@ambest.com
or
Peter
Dickey
Assistant Vice President
908-439-2200,
ext. 5053
peter.dickey@ambest.com
or
Rachelle
Morrow
Senior Manager, Public Relations
908-439-2200,
ext. 5378
rachelle.morrow@ambest.com
or
Jim
Peavy
Assistant Vice President, Public Relations
908-439-2200,
ext. 5644
james.peavy@ambest.com
Source: A.M. Best Co.
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