A.M. Best Co. has upgraded the financial strength rating (FSR) to ‘A’ (Excellent) from ‘A-‘ (Excellent) and the issuer credit ratings (ICR) to “a+” from “a-” of PARIS RE and its affiliates. Consequently Best has removed the ratings from under review with positive implications and assigned a positive outlook.
Best also affirmed the ICR of “bbb-” of the holding company, Swiss-based PARIS RE Holdings Limited (PRH) with a positive outlook, and then withdrew this rating and assigned an “nr”.
In addition Best withdrew the FSR of ‘A-‘ (Excellent) and ICR of “a-” of CGRM (Compagnie Generale de Reassurance de Monte Carlo) and assigned an NR-5 to the FSR and an “nr” to the ICR, as this company was dissolved in 2009 as part of a corporate re-organization.
The rating actions reflect the successful acquisition of PRH by Bermuda-based PartnerRe Ltd (PRE). [See IJ web site – https://www.insurancejournal.com/news/international/2009/07/06/101953.htm and https://www.insurancejournal.com/news/international/2009/12/08/105808.htm].
Best noted that as a result of the acquisition PARIS Re benefits from being associated with “part of a well capitalized, more diversified group with a history of strong overall performance and a solid enterprise risk management framework.
“The ratings of PRH’s operating companies reflect their solid risk-adjusted capitalization, diversified business profile and limited but supportive historical operating performance. These rating actions also reflect the planned integration of the PRH entities into the existing PRE operating structure enhancing the security afforded to PRH policyholders.
“The positive outlook recognizes the expected alignment of PRH policyholder interests to those of PRE, which carries an ICR of “aa-” at the operating company level. Should the expected integration of the PRE and PRH companies not proceed as outlined by management, the positive outlook will be re-evaluated and the ratings of the PRH operating entities may be modified.
“The withdrawal of PRH’s ICR reflects its merger into an existing PartnerRe Ltd., Swiss acquisition company effective December 7, 2009.
Source: A.M. Best – www.ambest.com
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