Bermuda-based Renaissance Reinsurance Ltd. (RenRe) and Renaissance Reinsurance of Europe (Dublin, Ireland) have been affirmed the financial strength rating (FSR) of A+ (superior) and issuer credit ratings (ICR) of "aa-" by AM Best Co.

Best has also affirmed the ICR of "a-" and all debt ratings of RenaissanceRe Holdings Ltd. (RenaissanceRe).

Concurrently, the ratings agency has upgraded the FSR to A (excellent) from A- (excellent) and ICRs to "a" from "a-" for the Glencoe Group and its members.

Additionally, Best has affirmed the FSR of A (excellent) and ICR of "a" of DaVinci Reinsurance Ltd. (DaVinci). The outlook for all ratings is stable, including Glencoe Group, which has been revised to stable from positive.

The rating actions on RenRe reflect its continued superior risk-based level of capitalisation and historically excellent underwriting track record, which is fully-supported by outstanding risk management techniques, said Best.

According to the ratings agency, they also reflect RenRe's superior market reputation as a leader in state-of-the-art property catastrophe modelling and risk optimisation. This reputation has attracted capital from outside companies to form several successful joint ventures including DaVinci and Top Layer Reinsurance Ltd.

RenRe's operating performance through September 30, 2008 resulted in a 92 percent combined ratio, placing it above the average performance of its Bermuda peer group. The results also include $276 million of net losses attributable to Hurricanes Ike and Gustav. However, overall results were affected by investment losses attributable to the current crisis in the financial markets despite maintaining a portfolio of predominately highly rated fixed income investments.

Offsetting these strengths are RenRe's exposure to high severity losses associated with catastrophic events on a worldwide basis as well as exposure to investment losses due to the current credit crisis. These factors are greatly mitigated by RenaissanceRe's disciplined and analytical underwriting approach, sophisticated catastrophe modelling capabilities and active monitoring controls over both reserves and investments.