Paris Re Holdings Ltd., a Switzerland-based reinsurer acquired by Bermuda-based PartnerRe Ltd. last year, has seen its financial strength rating upgraded to A from A- by AM Best.

The New Jersey-based credit rating agency said the upgrade reflected the successful acquisition by PartnerRe and "the benefits associated with being part of a well capitalised, more diversified group with a history of strong overall performance and a solid enterprise risk management framework".

AM Best has a positive outlook for Paris Re ratings, indicating that another upgrade may come in the next one to three years.

"The ratings of Paris Re's operating companies reflect their solid risk-adjusted capitalisation, diversified business profile and limited but supportive historical operating performance," Best's commentary said.

"These rating actions also reflect the planned integration of the Paris Re entities into the existing PartnerRe operating structure enhancing the security afforded to Paris Re policyholders."