Bermuda-based PartnerRe Group and its members have been affirmed the financial strength rating (FSR) of A+ (superior) and the issuer credit ratings of aa- by AM Best, in reflection of its solid business profile, risk-adjusted capitalisation and strong enterprise risk management practices.

Concurrently, AM Best has affirmed the ICR of a- and debt ratings of PartnerRe's parent, PartnerRe Ltd.

PartnerRe is a global provider of multi-line reinsurance, and its competitive position benefits from diversification on both a geographic and product lines basis. Due to these factors and its experienced management team, PartnerRe's operating performance compares favorably to its peer group of global reinsurance companies, according to AM Best.

Through September 30, PartnerRe generated solid net income of $537.2 million, which sets the company on pace to maintain operating momentum after a record 2006 performance. Driving this performance is very strong underwriting results, as non-life property/casualty operations generated a combined ratio of 81.2 percent through the first nine months of this year. Additionally, due to strong operating cash flow, the company's invested asset base continues to expand, which increases the positive effect of net investment income on earnings.

Somewhat offsetting these rating strengths are PartnerRe's moderately above average risk profile, softening market conditions within the global reinsurance industry and relatively high financial leverage of Partner Re Ltd. As an assumer of risk, PartnerRe's earnings and capitalization are subject to large shock losses including natural catastrophes. In order to mitigate overall exposure to large losses, PartnerRe manages catastrophe exposure on a zonal aggregate basis and limits its exposure as a percentage of total capital within identified zones.

Additionally, as part of its strong enterprise risk management process, PartnerRe continually assesses its overall risk position, including loss reserve risk, investment risk and credit risk, and runs various scenarios to highlight any potential correlation exposure.

AM Best believes that PartnerRe's long standing strategy of cycle management through diversification should allow it to successfully manage through the current underwriting cycle, albeit at potentially reduced margins given rate softening and increased global capacity. Moreover, the ratings agency will monitor the growth in the company's life and alternative risk transfer segments as these product offerings differ from PartnerRe's traditional property/casualty reinsurance operations and are expected to be areas of growth for the company.