RenRe credit rating affirmed
AM Best has affirmed the credit ratings of Bermudian-based RenaissanceRe Holdings Limited and its main subsidiaries.
The ratings agency affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of Renaissance Reinsurance Ltd (RenaissanceRe), Renaissance Reinsurance US Inc (Maryland), RenaissanceRe Specialty US Ltd, Renaissance Reinsurance of Europe Unlimited Company (Dublin) and RenaissanceRe Europe AG (Zurich) (formerly named Tokio Millennium Re AG).
Additionally, AM Best affirmed the long-term ICR of “a-” (Excellent) and the long-term issue credit ratings of RenaissanceRe Holdings Ltd.
AM Best also affirmed the FSR of A (Excellent) and the long-term ICR of “a+” (Excellent) of DaVinci Reinsurance Ltd and the long-term ICR of “bbb+” (Good) of DaVinciRe Holdings Ltd.
Concurrently, AM Best affirmed the FSR of A (Excellent) and the long-term ICR of “a+” (Excellent) of Vermeer Reinsurance Ltd.
The outlook of these credit ratings is stable.
All aforementioned companies are domiciled in Bermuda unless otherwise specified.
The ratings of RenaissanceRe reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favourable business profile and very strong enterprise risk management.
AM Best’s assessment of RenaissanceRe’s overall balance sheet strength considers the superior consolidated risk-adjusted capitalisation of its ultimate parent, RenaissanceRe Holdings Ltd, which typically maintains significant capital at the holding company level that is available to be down-streamed into its underwriting companies as needed.
RenaissanceRe’s ratings also benefit from the strength and depth of the company’s management team and ability to deliver strong, long-term profitability over the course of the market cycle.
While RenaissanceRe remains a leader in the property catastrophe reinsurance segment, the company has gained significant traction in specialty property/casualty lines, which now comprise more than half of its underwriting premiums.
RenaissanceRe is also widely recognised for its leadership in ERM, modelling capabilities and as a pioneer in third-party capital management, where it maintains a strong reputation in evaluating risk and effectively deploying capital.
As a result, it has attracted capital from outside investors to form several successful joint ventures, including DaVinci, Top Layer Reinsurance Ltd, Vermeer, and most recently, Fontana Holdings LP, its first third-party reinsurance capital-backed joint venture focused on casualty and specialty risks.
Partially offsetting these strengths is RenaissanceRe’s exposure to high-severity losses associated with global catastrophe events, although the company’s underwriting results and overall operating performance has grown increasingly less volatile, as diversifying business lines have mitigated the impact of catastrophe losses.
Looking forward, RenaissanceRe appears well-positioned to benefit from ongoing broad-based pricing improvement in most of its key product lines, AM Best said.
The ratings of DaVinci reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and very strong ERM.
DaVinci’s profile is enhanced due to its affiliation to RenaissanceRe. Additionally, DaVinci’s catastrophe-stressed Best’s capital adequacy ratio analysis contemplated its $500 million capital raise on January 1, 2022.
The ratings of Vermeer reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and very strong ERM.