A.M. Best Affirms Ratings of RenaissanceRe Holdings Ltd. and Its Subsidiaries
By a
Additionally,
Concurrently, A. M. Best has affirmed the FSR of A (Excellent) and the ICR of "a" of
The rating actions reflect RenRe's 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 insurance cycle. The company is widely recognized for its thoughtful leadership in enterprise risk management and as a pioneer in third-party capital management. In that regard, 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 investors to form several successful joint ventures, including
The ratings of DaVinci recognize its 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 with RenRe.
The ratings of RenRe Specialty Risks,
Offsetting these strengths is RenRe's exposure to high severity losses associated with catastrophic events. The global reinsurance market in general, and specifically the property catastrophe segment, has been experiencing overcapacity and resulting price pressures on rates that have pressured historically high return measures. The negative outlooks on the ICRs of RenRe and DaVinci reflect these adverse market conditions. The pricing pressure coupled with the flow of alternative capital and increased retentions of primary companies have exacerbated the pressure on return measures, which may be sustained for a long period of time. This pressure rationalizes
Factors that could return the negative outlooks to stable include superior operating results coupled with strong risk-adjusted capitalization over the long term. Factors that could lead to a downgrade include outsized catastrophe or investment losses, weak or strained risk-adjusted capitalization or continued downward pressure on property catastrophe rates, which is currently the organizations main line of business.
The following issue ratings have been affirmed with a negative outlook:
The following indicative shelf issue ratings have been affirmed with a negative outlook:
Keywords for this news article include:
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2016, NewsRx LLC
Surex Direct Introduces Canada to Tenant & Condo Insurance Made Simple
Investigators from New York University Target Medicare and Medicaid (The Relationship Between Hospital Payer Mix and Volume Growth in Total Joint…
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News