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.

AM Best, PartnerRe, Ratings, EXOR, M&A, Bermuda

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