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 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 ICR of “aa+” and the commercial paper of
AMB-1+ of General Re Corporation. The outlook for all ratings is
stable, with the exception of the commercial paper, which does not have
an outlook. (Please see below for a detailed listing of the companies
and ratings.)
The ratings reflect Gen Re’s consistently superior capitalization,
strong operating performance and diversified operating platform, which
includes both property/casualty and life reinsurance/insurance business
segments with worldwide market profiles. These positive aspects are
further reinforced by the support provided by its ultimate parent, Berkshire
Hathaway Inc.(Berkshire) (Omaha, NE) (NYSE: BRKa and BRKb) and the
reinsurance coverages provided by Berkshire affiliates, National
Indemnity Company (NICO) and Columbia Insurance Company
(CIC), both rated A++ (Superior). The Berkshire relationship provides
Gen Re with enhanced financial flexibility and investment expertise, and
the NICO and CIC reinsurance coverages, which were effective January 1,
2005, provide substantial reinsurance protection through both a loss
portfolio transfer and quota share agreement for business written by
their North American property/casualty companies.
Gen Re maintains risk-based capitalization that is fully supportive of
its ratings and risk appetite and is further enhanced by a consistently
strong operating performance that is complemented by investment income
from its well diversified investment portfolio managed by Berkshire. Gen
Re also maintains an extensive risk management program that measures
risk throughout its operations. The program includes formal risk
management committees, a capital model and well documented corporate
governance.
Gen Re’s life operations primarily consist of individual life and
accident and health reinsurance lines of business. The life operations
continues to produce positive operating earnings due to strong
underwriting, despite new business strain and losses from the run-off of
the long-term care line of business. In addition, the investment
portfolio has performed well and has obtained strong yields. 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 consequently its risk-adjusted capitalization falls consistently
below expectations for a prolonged period or if capital erosion occurs
due to investment volatility or increased risk appetite, which exceeds
A.M. Best expectations.
The FSR of A++ (Superior) and ICRs of “aa+” have been affirmed for General
Reinsurance Corporation and its following core property/casualty and
life reinsurance/insurance subsidiaries:
- Faraday Reinsurance Company Limited
- General Re Life Corporation
- General Reinsurance Australia Ltd
- General Reinsurance Life Australia Ltd.
- General Reinsurance AG
- General Reinsurance Africa Ltd
- General Star Indemnity Company
- Genesis Star National Insurance Company
- Genesis Insurance Company
The FSR of A- (Excellent) and ICR of “a-” have been affirmed for IdeaLife
Insurance Company, a subsidiary of Berkshire Hathaway Inc.
The FSR of B+ (Good) and ICR of “bbb-” have been affirmed for Commercial
Casualty Insurance Company, a subsidiary of Berkshire Hathaway
Inc.
The FSR of A (Excellent) and the ICR of “a” have been affirmed for Fairfield
Insurance Company, a subsidiary of Berkshire Hathaway Inc.
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 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.
Peter Dickey, 908-439-2200, ext. 5053
Assistant
Vice President
peter.dickey@ambest.com
or
John
Andre, 908-439-2200, ext. 5619
Group Vice President
john.andre@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public
Relations
rachelle.morrow@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Public Relations
james.peavy@ambest.com
Source: A.M. Best Co.
| Copyright: | Copyright Business Wire 2012 |
| Wordcount: | 694 |
