AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of PartnerRe’s operating subsidiaries.

Concurrently, AM Best has affirmed the long-term ICR of “a-” (Excellent) of PartnerRe. The outlook of these credit ratings is stable.

The agency said the ratings reflect PartnerRe’s balance sheet strength, which it assesses as strongest, as well as its adequate operating performance, very favourable business profile and appropriate enterprise risk management.

AM Best said the rating affirmations reflect PartnerRe’s excellent level of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, which has consistently remained supportive of the group’s overall balance sheet strength assessment of strongest.

The firm added that over the past two years, PartnerRe reported material reserve strengthening related to its American casualty business consistent with industry trends, although the impact of this adverse development has been mitigated by strong performance in other areas.

“As a result, PartnerRe’s underwriting performance has been consistently solid for several consecutive years, including significant earnings contributions from both non-life and life/health operating segments,” AM Best said.

“Underwriting profits have been complemented by strong overall investment returns, leading to robust growth in shareholder’s equity for the past three calendar years, even after significant dividend payments made to PartnerRe’s parent company over this time frame.”

The financial strength rating of A+ (Superior) and long-term issuer credit ratings of “aa-” (Superior) have been affirmed, each with a stable outlook, for the operating subsidiaries of PartnerRe including Partner Reinsurance Company, Partner Reinsurance Company of the US, PartnerRe Ireland Insurance Designated Activity Company, Partner Reinsurance Europe SE, PartnerRe America Insurance Company, PartnerRe Life Reinsurance Company of Canada, PartnerRe Life Reinsurance Company of America and PartnerRe Insurance Solutions Bermuda.