AM Best affirms financial strength of RenRe

AM Best has affirmed the financial strength rating (FSR) of A+ (‘superior’) and the long-term issuer credit rating (ICR) of aa- (‘superior’) of Renaissance Reinsurance, Renaissance Reinsurance US (Maryland), RenaissanceRe Specialty US, Renaissance Reinsurance of Europe Unlimited Company (Dublin) and RenaissanceRe Europe (Zurich) (formerly named Tokio Millennium Re).

Additionally, AM Best affirmed the long-term ICR of a- (‘excellent’) and the long-term issue credit ratings of RenaissanceRe Holdings.

AM Best has also affirmed the FSR of A (‘excellent’) and the long-term ICR of a+ (‘excellent’) of DaVinci Reinsurance and the long-term ICR of bbb+ (‘good’) of DaVinciRe Holdings.

Concurrently, AM Best affirmed the FSR of A (‘excellent’) and the long-term ICR of a+ (‘excellent’) of Vermeer Reinsurance.

The outlook of all these credit ratings is stable.

AM Best assesses the group’s balance sheet as strongest, its operating performance as adequate, its business profile as favourable, and its enterprise risk management as very strong.

The rating agency also highlighted RenRe’s management team and ability to deliver strong, long-term profitability.

The company does however have exposure to high-severity losses associated with global catastrophe events, AM Best said, although its underwriting results and overall operating performance has grown increasingly less volatile, as diversifying business lines have mitigated the impact of catastrophe losses.