AM Best has upgraded the Financial Strength Rating (FSR) of PartnerRe and its subsidiaries from A (Excellent) to A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICR) to aa- from a+.
AM Best also has upgraded the Long-Term ICR of PartnerRe and its existing Long-Term Issue Credit Ratings (Long-Term IR) from bbb+ to a-.
The ratings reflect PartnerRe’s strong balance sheet strength, adequate operating performance, a very favorable business profile and appropriate enterprise risk management (ERM).
AM Best states that PartnerRe’s underwriting performance in 2017 and 2018 was well within expectations during a period when the industry experienced a significant level of catastrophe loss activity.
The rating agency attributes this to prudent risk selection and retrocession usage, which has kept PartnerRe’s net probable maximum losses at manageable levels but still allowing the group to provide meaningful market capacity.
Furthermore, PartnerRe has built its life book of business in a selective and measured manner that is reflective of the group’s risk culture.
The group’s quality of capital is considered in line with peers but has a superior history of favorable prior-year reserve development.
The group maintains a highly diversified book of reinsurance business across non-life and life lines of business, as well as a balanced geographic spread of risk.
AM Best believes that PartnerRe’s current focus to build out of life and health operations could provide additional diversification to help navigate challenging market conditions while enhancing earning stability over the medium to long term.
