26 May 2017News

AM Best affirms PartnerRe’s rating after EXOR purchase

AM Best has affirmed the financial strength rating (FSR) of A (Excellent) of PartnerRe and its affiliates. The rating has also been granted an outlook of stable.

According to the rating agency, the rating reflects PartnerRe’s strong risk-adjusted capitalisation, well diversified book of business, global business profile and earnings capacity. Also reflected in the ratings is the recent stability afforded to PartnerRe under its new owner, EXOR.

EXOR finalised its purchase of PartnerRe in March 2016, after a lengthy battle with Axis Capital.

AM Best pointed out that PartnerRe maintains a highly diversified book of reinsurance business across both non-life and life lines of business, as well as a balanced geographic spread of risk and that the rating agency still has some lingering concerns about PartnerRe’s focus on reinsurance due to the very challenging market conditions.

However, AM Best said that it believes that PartnerRe’s current focus to build out of life and health operations could provide additional diversification to offset those challenges. Under EXOR ownership, AM Best believes that PartnerRe’s financial flexibility will be maintained as it still has access to the capital markets on a stand-alone basis, as well as potentially through EXOR, which is a publicly traded company in Italy.

In addition, the rating agency said that PartnerRe maintains a strong risk management infrastructure that is embedded throughout the organisation with clearly delineated roles and responsibilities. Such an infrastructure is needed given the level of complexity of the group’s risk profile.




More on this story

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4 May 2017   PartnerRe has reported that its profits for the first quarter of 2017 were just $38 million, a fall of 82 percent on the $201 million that it reported over the same period of 2016. PartnerRe said that it had been hit by a combination of factors that had impacted its bottom line results.
News
21 March 2016   Italian investment firm EXOR has completed its lengthy battle to acquire Bermuda-based reinsurer PartnerRe for $6.9 billion
News
18 June 2018   AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit ratings (long-term ICR) of “a+” for most of the operating subsidiaries of PartnerRe, collectively referred to as PartnerRe.

More on this story

News
4 May 2017   PartnerRe has reported that its profits for the first quarter of 2017 were just $38 million, a fall of 82 percent on the $201 million that it reported over the same period of 2016. PartnerRe said that it had been hit by a combination of factors that had impacted its bottom line results.
News
21 March 2016   Italian investment firm EXOR has completed its lengthy battle to acquire Bermuda-based reinsurer PartnerRe for $6.9 billion
News
18 June 2018   AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit ratings (long-term ICR) of “a+” for most of the operating subsidiaries of PartnerRe, collectively referred to as PartnerRe.