Recently, A. M. Best Co. affirmed the issuer credit rating
RenaissanceRe Holdings Ltd.
) at "a-." All debt ratings of the company were also
Further, the rating agency affirmed the financial strength
rating (FSR) and ICR of Renaissance Reinsurance Ltd. and
Renaissance Reinsurance of Europe at "A+" and "aa-,"
respectively. A. M. Best also affirmed the FSR and ICR of
RenaissanceRe Specialty Risks Ltd. at "A" and "a,"
Moreover, the rating agency affirmed the FSR and ICR of
DaVinci Reinsurance Ltd. at "A" and "a+," respectively and the
ICR of DaVinci Re Holdings Ltd. at "bbb+." Further, A. M. Best
assigned an FSR of "A" and an ICR of "a" to RenaissanceRe
Specialty U.S. Ltd.
All the above-mentioned ratings of RenaissanceRe and its
subsidiaries carry a stable outlook.
The rating affirmation was based on Renaissance Reinsurance's
strong risk-adjusted capitalization, large and capable management
team, and the company's profit-making ability over the long term.
The company's status as a leader in property catastrophe modeling
and risk optimization also supports the ratings, partly offset by
Renaissance Reinsurance's high exposure to global catastrophe
The rating affirmation of DaVinci Reinsurance was based on its
strong operating results over the past few years, sustained
sturdy risk-adjusted capitalization and its association with
Renaissance Reinsurance. Further, the affirmation of
RenaissanceRe Specialty U.S. was based on its admirable business
plans, sturdy risk-adjusted capitalization, safety provided by
internal reinsurance agreements and its association with
The ratings can be revised upward or the outlook can be
altered to positive if Renaissance Reinsurance and the other
companies continue to maintain above-average operating
profitability and strong risk-adjusted capitalization over the
Alternatively, the ratings may be revised downward or the
outlook can be changed to negative if these companies witness
weak operating results over the long term, significantly high
catastrophe or investment losses compared to peers, substantial
decline in the risk-adjusted capitalization, lower commitment
from Renaissance Reinsurance or a substantial unfavorable
development in loss reserve.
Rating affirmations or upgrades from credit rating agencies
play an important part in retaining investor confidence in the
stock as well as maintaining credit worthiness in the market. We
believe that strong ratings will help RenaissanceRe retain
investor confidence and help it write more businesses going
forward, thereby boosting results.
RenaissanceRe carries a Zacks Rank #1 (Strong Buy). Other
property and casualty insurers worth considering are
Re Holdings Ltd.
XL Group plc
Hilltop Holdings Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).
HILLTOP HLDGS (HTH): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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