A.M. Best Affirms Ratings of RenaissanceRe Holdings Ltd. and Its Subsidiaries

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).

Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICRs of “a” of RenRe Insurance and its members.Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of DaVinci Reinsurance Ltd. (DaVinci). The outlook for all ratings is stable. All companies are domiciled in Hamilton, Bermuda, except where specified. (See below for a detailed listing of the companies and ratings.)

The rating actions reflect RenRe’s superior level of risk-based capitalization and historically excellent underwriting track record. Furthermore, these rating actions also reflect the company’s outstanding risk management techniques and active capital 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.

RenRe’s operating performance through December 31, 2009 resulted in a 45% combined ratio and a return on average equity of 30.2% for the year, placing the company among the performance leaders in its Bermuda peer group. The company’s risk-based capitalization remains fully supportive of its rating level and is further enhanced by a substantial level of cash and investments held at RenaissanceRe.

RenRe Insurance and its members provide specialty and individual risk direct insurance and quota share reinsurance to the U.S. market. This segment has successfully grown in multi-peril crop, commercial multi-line and commercial property lines of business and is supported through reinsurance agreements provided by RenRe. Operating results have been solid for RenRe Insurance and its members, while risk-based capitalization remains fully supportive of current ratings.

Offsetting these strengths is RenRe’s exposure to high severity losses associated with catastrophic events on a worldwide basis. However, this factor is greatly mitigated by RenRe’s disciplined and analytical underwriting approach, sophisticated catastrophe modeling capabilities and active monitoring controls over both reserves and investments.

The FSR of A (Excellent) and ICRs of “a” have been affirmed for RenRe Insurance and its following members:

• Glencoe Insurance Ltd.
• Stonington Insurance Company
• Lantana Insurance Ltd.
• Stonington Lloyds Insurance Company

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Peter Dickey, 908-439-2200, ext. 5053
[email protected]
or
Robert DeRose, 908-439-2200, ext 5453
[email protected]
or
Public Relations
Rachelle Morrow, 908-439-2200, ext. 5378
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.