PartnerRe’s operating performance compares favourably to its peer group, says AM Best
AM Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings of “aa-” of PartnerRe Group (PartnerRe) (Hamilton, Bermuda) and its members. The outlook for all ratings is stable.
The ratings reflect PartnerRe’s excellent business profile, strong risk-adjusted capitalisation and strong enterprise risk management practices.
PartnerRe is a global provider of multi-line reinsurance, and its competitive position benefits from diversification on both a geographic and product lines basis.
Due to these factors and its experienced management team, PartnerRe’s operating performance compares favourably to its peer group of global reinsurance companies. Through September 30, 2007, PartnerRe generated solid net income of $537.2m, which sets the company on pace to maintain operating momentum after a record 2006 performance.
Somewhat offsetting these rating strengths are PartnerRe’s moderately above average risk profile, softening market conditions within the global reinsurance industry and relatively high financial leverage of Partner Re Ltd.
AM Best believes that PartnerRe’s long standing strategy of cycle management through diversification should allow it to successfully manage through the current underwriting cycle, albeit at potentially reduced margins given rate softening and increased global capacity.