AM Best Affirms Credit Ratings of RenaissanceRe Holdings Ltd. and Its Main Subsidiaries
AM Best has affirmed the credit ratings of RenaissanceRe Holdings (RNR) and its main subsidiaries. The Financial Strength Rating (FSR) of A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior) were affirmed for RenaissanceRe's key entities. RNR's Long-Term ICR of 'a-' (Excellent) was also affirmed. The outlook for these ratings is stable.
The ratings reflect RenaissanceRe's strongest balance sheet strength, adequate operating performance, very favorable business profile, and very strong enterprise risk management. AM Best highlighted RNR's improved operating performance in recent years, with reduced volatility due to diversification into specialty and casualty lines. The company's successful integration of Validus Reinsurance, and its subsidiaries has further strengthened its global market position.
AM Best ha confermato i rating creditizi di RenaissanceRe Holdings (RNR) e delle sue principali filiali. La Valutazione di Forza Finanziaria (FSR) di A+ (Superiore) e i Rating di Credito a Lungo Termine (Long-Term ICR) di 'aa-' (Superiore) sono stati confermati per le entità principali di RenaissanceRe. Anche il Long-Term ICR di RNR di 'a-' (Eccellente) è stato confermato. La prospettiva per questi rating è stabile.
I rating riflettono la solidità del bilancio più forte di RenaissanceRe, un'adeguata performance operativa, un profilo aziendale molto favorevole e una gestione del rischio d'impresa molto forte. AM Best ha evidenziato il miglioramento delle performance operative di RNR negli ultimi anni, con una riduzione della volatilità grazie alla diversificazione nelle linee speciali e di responsabilità. L'integrazione di successo di Validus Reinsurance e delle sue filiali ha ulteriormente rafforzato la sua posizione nel mercato globale.
AM Best ha afirmado las calificaciones crediticias de RenaissanceRe Holdings (RNR) y sus principales filiales. Se han confirmado la Calificación de Fortaleza Financiera (FSR) de A+ (Superior) y las Calificaciones de Crédito a Largo Plazo (Long-Term ICR) de 'aa-' (Superior) para las entidades clave de RenaissanceRe. También se ha confirmado el Long-Term ICR de 'a-' (Excelente) de RNR. La perspectiva de estas calificaciones es estable.
Las calificaciones reflejan la fuerza del balance más fuerte de RenaissanceRe, un rendimiento operativo adecuado, un perfil empresarial muy favorable y una gestión de riesgo empresarial muy sólida. AM Best destacó el mejoramiento del rendimiento operativo de RNR en los últimos años, con una menor volatilidad debido a la diversificación en líneas especiales y de responsabilidad. La exitosa integración de Validus Reinsurance y sus filiales ha fortalecido aún más su posición en el mercado global.
AM Best는 RenaissanceRe Holdings (RNR) 및 그 주요 자회사의 신용 등급을 확정했습니다. RenaissanceRe의 주요 엔터티에 대해 A+ (우수)의 재무 건전성 평가 (FSR)와 'aa-' (우수)의 장기 발행자 신용 등급 (Long-Term ICR)이 확정되었습니다. RNR의 장기 ICR 'a-' (우수)도 확정되었습니다. 이러한 등급에 대한 전망은 안정적입니다.
이 등급은 RenaissanceRe의 가장 강력한 재무 상태, 적절한 운영 성과, 매우 유리한 사업 프로필 및 매우 강력한 기업 위험 관리 를 반영합니다. AM Best는 최근 몇 년 동안 RNR의 운영 성과가 개선되었다고 강조했으며, 전문 및 책임 보험 분야로의 다각화로 인해 변동성이 줄어들었습니다. 이 회사의 Validus Reinsurance의 성공적인 통합과 그 자회사는 글로벌 시장 내 입지를 더욱 강화했습니다.
AM Best a confirmé les notations de crédit de RenaissanceRe Holdings (RNR) et de ses principales filiales. La Note de Solidité Financière (FSR) de A+ (Supérieur) et les Notations de Crédit à Long Terme (Long-Term ICR) de 'aa-' (Supérieur) ont été confirmées pour les entités clés de RenaissanceRe. La Long-Term ICR de RNR de 'a-' (Excellent) a également été confirmée. Les perspectives pour ces notations sont stables.
Les notations reflètent la plus grande solidité du bilan de RenaissanceRe, une performance opérationnelle adéquate, un profil commercial très favorable et une gestion des risques d'entreprise très solide. AM Best a souligné la performance opérationnelle améliorée de RNR ces dernières années, avec une volatilité réduite grâce à la diversification dans les lignes de spécialité et de responsabilité. L'intégration réussie de Validus Reinsurance et de ses filiales a encore renforcé sa position sur le marché mondial.
AM Best hat die Kreditratings von RenaissanceRe Holdings (RNR) und ihren wichtigsten Tochtergesellschaften bestätigt. Die Finanzstärke-Bewertung (FSR) von A+ (Hervorragend) und die Langfristigen Emittenten-Kreditratings (Long-Term ICR) von 'aa-' (Hervorragend) wurden für die wichtigsten Unternehmen von RenaissanceRe bestätigt. Auch die Langfristige ICR von 'a-' (Ausgezeichnet) wurde für RNR bestätigt. Der Ausblick für diese Ratings ist stabil.
Die Ratings spiegeln die stärkste Bilanzstärke von RenaissanceRe, eine adäquate betriebliche Leistung, ein sehr günstiges Geschäftprofil und ein sehr starkes Risikomanagement des Unternehmens wider. AM Best hob die verbesserte betriebliche Leistung von RNR in den letzten Jahren hervor, die durch Diversifizierung in Spezial- und Haftpflichtsegmente zu einer reduzierten Volatilität geführt hat. Die erfolgreiche Integration von Validus Reinsurance und ihren Tochtergesellschaften hat ihre Position auf dem globalen Markt weiter gestärkt.
- AM Best affirmed A+ (Superior) Financial Strength Rating for RenaissanceRe
- Balance sheet strength assessed as 'strongest'
- Very favorable business profile assessment
- Improved operating performance with reduced volatility
- Successful integration of Validus Reinsurance, strengthening market position
- Strong reputation in risk evaluation and capital deployment
- Increased investment returns due to higher yields on fixed-income portfolio
- Exposure to high-severity losses from global catastrophe events
Insights
AM Best's affirmation of RenaissanceRe's (RNR) ratings underscores the company's robust financial position and strategic market presence. The upgrade of their business profile to "very favorable" is particularly noteworthy, reflecting the successful integration of Validus Reinsurance. This acquisition has significantly enhanced RNR's global market position, especially in property catastrophe reinsurance and casualty lines.
The company's "strongest" balance sheet strength and "very strong" enterprise risk management are key positives. RNR's ability to attract and deploy capital efficiently across market cycles is a important competitive advantage. The improved operating performance, with reduced volatility due to diversification into specialty and casualty lines, is a positive trend for investors to monitor.
However, exposure to high-severity catastrophe losses remains a risk factor. Overall, this rating affirmation signals stability and strength in RNR's financial outlook, which should be viewed favorably by investors in the current reinsurance market conditions.
The affirmation of RenaissanceRe's credit ratings by AM Best is a strong indicator of the company's financial health and market position. Key financial metrics to note include:
- Balance sheet strength assessed as "strongest"
- Operating performance rated as "adequate"
- Business profile upgraded to "very favorable"
- Enterprise risk management considered "very strong"
The company's improved operating performance, with reduced volatility and very strong results in 2023, is particularly positive. The increased yield on their fixed-income portfolio due to higher interest rates is boosting investment returns, which should support profitability.
Investors should also note RNR's strong capital position and proven ability to raise funds in both equity and debt markets. This financial flexibility provides a buffer against potential market shocks and supports growth opportunities.
RenaissanceRe's strengthened market position following the Validus Re acquisition is a game-changer. This move has solidified RNR's leadership in property catastrophe reinsurance and significantly expanded its casualty and specialty lines, which now account for over half of underwriting premiums.
The company's reputation in risk evaluation and capital deployment is attracting third-party capital, as evidenced by successful joint ventures like DaVinci and Fontana Holdings. This ability to leverage external capital is a key competitive advantage in the reinsurance market.
RNR appears well-positioned to capitalize on favorable market conditions in global reinsurance. The diversification of its portfolio is reducing volatility from catastrophe exposures, which should appeal to risk-averse investors.
However, the reinsurance market remains cyclical and competitive. Investors should monitor how RNR navigates these dynamics while integrating its recent acquisitions to fully realize the potential synergies.
The ratings of RenaissanceRe reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile and very strong enterprise risk management (ERM).
AM Best’s assessment of RenaissanceRe’s overall balance sheet strength considers the positive impact of the financial flexibility provided by its ultimate parent, RNR, which typically maintains significant capital at the holding company level and is available to be downstreamed into its underwriting companies, as needed. RNR has consistently demonstrated its ability to raise capital through the public and private equity markets, as well as the public debt markets. RNR’s ability to attract and deploy capital during favorable and challenging market cycles is an important consideration in AM Best’s assessment of the enterprise’s overall balance sheet strength and the individual balance sheet assessments of RNR’s operating companies.
RenaissanceRe’s operating performance has improved substantially in recent years in terms of dampened volatility as its specialty and casualty lines have earned into the portfolio and partially offset the volatility produced by the property catastrophe core of RenaissanceRe’s writings. Additionally, for the year ended Dec. 31, 2023, which did not experience outsized property catastrophe activity, RenaissanceRe produced very strong operating performance from underwriting and fee generation. Lastly, investment returns have increased significantly as RenaissanceRe’s relatively short-duration fixed-income portfolio experienced a marked increase in yield as expiring issuances were reinvested at improved yields to maturity.
AM Best has revised its assessment of RenaissanceRe’s business profile to very favorable from favorable, which partially reflects the company’s successful integration of Validus Reinsurance, Ltd. (Validus Re) and its consolidated subsidiaries, which were acquired along with the rest of American International Group, Inc.’s treaty reinsurance business in a transaction that was completed in the fourth quarter of 2023. The addition of the Validus Re portfolio further strengthened RenaissanceRe’s already considerable global market position in the property catastrophe reinsurance segment, as well as in casualty and specialty lines that now comprise more than half of its underwriting premiums and have been consistently profitable. RenaissanceRe’s business profile assessment also recognizes the company’s leadership in ERM, modeling capabilities and 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 L.P., 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 continued, favorable overall market conditions in the global reinsurance space.
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.
The ratings of Fontana Re 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.
The ratings of Fontana Re US 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.
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.
The following Long-Term IRs have affirmed with stable outlooks:
RenaissanceRe Holdings Ltd.
-- “bbb” (Good) on
RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.)
-- “a-” (Excellent) on
-- “a-” (Excellent) on
The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:
RenaissanceRe Holdings Ltd.
-- “a-” (Excellent) on senior unsecured
-- “bbb+” (Good) on subordinated
-- “bbb” (Good) on preferred stock
RenaissanceRe Capital Trust II
-- “bbb” (Good) on trust preferred securities
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Director
+1 908 882 1737
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Associate Director, Public Relations
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Steven M. Chirico, CPA
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Source: AM Best
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