AM Best has upgraded the credit ratings of TransRe, a reinsurance company wholly owned by Alleghany Corporation, and removed them from under review with positive implications.
The reinsurer, and its subsidiaries, now hold a Financial Strength Rating (FSR) of A++ (Superior), which previously was A+ (Superior). Its Long-Term Issuer Credit Ratings (Long-Term ICR) are now “aa+” (Superior), upgraded from “aa-” (Superior).
The agency has also upgraded Alleghany Corporation and its affiliates credit ratings and removed them from under review with positive implications. Their Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) have gone from “a-” (Excellent) to “a+” (Excellent).
Both RSUI Group and CapSpecialty credit ratings have also been removed from under review with positive implications and upgraded.
In the case of RSUI Group, its FSR to A++ (Superior) from A+ (Superior) and the Long-Term ICRs to “aa+” (Superior) from “aa-” (Superior). CapSpecialty’s Long-Term ICR got upgraded to “a+” (Excellent) from “a” (Excellent) and its FSR of A (Excellent) was affirmed.
According to AM Best, the outlook assigned to TransRe, Alleghany Corp., RSUI Group and CapSpecialty credit ratings is stable.
The agency noted that, before the upgrades, the company’s ratings had been previously placed under review with positive implications following the completion of Berkshire Hathaway Inc.’s acquisition of Alleghany, which took place in October 2022.
These credit actions follow the completion of AM Best’s review of Berkshire Hathaway’s plans to support the re/insurance entities that it acquired as part of its purchase of Alleghany, the rating agency added.
AM Best said: “Berkshire Hathaway has put in place significant internal reinsurance support for TransRe, RSUI Group and CapSpecialty. This explicit support is complemented by implicit support that is associated with being part of Berkshire Hathaway, which possesses vast financial resources and financial flexibility.”
The ratings of TransRe, RSUI and CapSpecialty reflect their balance sheet strength, which AM Best assesses as strongest, the agency noted.
These upgrades also reflect TransRe’s adequate operating performance, as described by AM Best, as well as its very favourable business profile and appropriate enterprise risk management (ERM).
The ratings of RSUI also reflect the group’s strong operating performance, favourable business profile and appropriate ERM. And CapSpecialty’s reflect as well its marginal operating performance, neutral business profile and appropriate ERM, AM Best noted.
