A.M. Best Revises Outlook to Stable for PartnerRe Ltd. and Its Operating Subsidiaries Business Wire OLDWICK, N.J. -- May 16, 2013 A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Partner Reinsurance Company Ltd. (PartnerRe) (Hamilton, Bermuda) and its affiliates. A.M. Best also has revised the outlook to stable from negative and affirmed the ICR of “a-” and debt ratings of its parent, PartnerRe Ltd. (Hamilton, Bermuda) (NYSE: PRE). Concurrently, A.M. Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the ICR to “a+” from “a-” of PartnerRe America Insurance Company (PartnerRe America) (Delaware). The outlook for both ratings has been revised to stable from negative. PartnerRe America has been strategically repositioned to write accident and health business and is supported by a substantial quota share agreement with an affiliate. In addition, A.M. Best has downgraded the FSR to B++ (Good) from A- (Excellent) and the ICR to “bbb+” from “a-” of PARIS RE Asia Pacific Pte. Ltd. (ParisRe Asia) (Singapore). Subsequently, the ratings have been withdrawn due to the company’s request to no longer participate in A.M. Best’s interactive rating process. The company is currently in run off. (See below for a detailed listing of the companies and ratings.) The ratings and revised outlook of PartnerRe Ltd. and its subsidiaries reflect the group’s strong risk-adjusted capitalization, strong business profile as a truly global reinsurance organization and solid 2012 operating performance, which demonstrates its ability to deliver results that are amongst the top of its peers. While the 2011 performance dampened long-term averages and brought focus on the company’s enterprise risk management (ERM) processes, A.M. Best remains confident that PartnerRe Ltd. retains the capability and expertise to write a diverse book of business in various global geographies that will drive superior on-going profitability. Factors that could result in a downgrading of the ratings and/or a revision of the outlook to negative include unfavorable operating results relative to the market or an altered view of the organization’s ERM capability and/or a material decline in risk-adjusted capital. Factors that could lead to an upgrading of the ratings and/or a revision of the outlook to positive would be consistent, long-term operating profitability coupled with maintenance of strong risk-adjusted capital. The FSR of A+ (Superior) and ICRs of “aa-” have been affirmed for Partner Reinsurance Company Ltd. and its following affiliates: *Partner Reinsurance Company of the U.S. *PartnerRe Insurance Company of New York *PartnerRe Ireland Insurance Limited *Partner Reinsurance Europe SE The following debt ratings have been affirmed: PartnerRe Ltd.— -- “bbb” on $230 million 6.5% preferred shares, Series D -- “bbb” on $325 million 7.25% preferred shares, Series E -- “bbb” on $250 million 5.875% preferred shares, Series F PartnerRe Finance A LLC— -- “a-” on $250 million 6.875% senior unsecured notes, due 2018 PartnerRe Finance B LLC— -- “a-” on $500 million 5.5% senior unsecured notes, due 2020 PartnerRe Financial II, Inc.— -- “bbb” on $250 million 6.44% junior subordinated capital efficient notes, due 2066 The following indicative ratings under the shelf registration have been affirmed: PartnerRe Ltd.— -- “a-” on senior debt -- “bbb+” on subordinated debt -- “bbb” on preferred stock PartnerRe Financial II, Inc. (guaranteed by PartnerRe Ltd.)— -- “a-” on senior debt -- “bbb+” on subordinated debt -- “bbb” on preferred stock PartnerRe Capital Trust II and III (guaranteed by PartnerRe Ltd.)— -- “bbb+” on trust preferred securities The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best Co. Greg Reisner, 908-439-2200, ext. 5224 Managing Senior Financial Analyst firstname.lastname@example.org or Peter Dickey, 908-439-2200, ext. 5053 Assistant Vice President email@example.com or Rachelle Morrow, 908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, 908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Revises Outlook to Stable for PartnerRe Ltd. and Its Operating Subsidiaries
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