A.M. Best Affirms Ratings of PartnerRe Ltd. and Its Operating Subsidiaries Business Wire OLDWICK, N.J. -- June 12, 2014 A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of “aa-” of Partner Reinsurance Company Ltd. (PartnerRe) and its affiliates. A.M. Best also has affirmed the ICR of “a-” and debt ratings of PartnerRe’s parent, PartnerRe Ltd. [NYSE: PRE]. The outlook for all ratings is stable. All the above named companies are domiciled in Hamilton, Bermuda. The ratings and outlook for PartnerRe Ltd. and its subsidiaries reflect their strong risk-adjusted capitalization, strong business profile as a truly global reinsurance organization and solid 2013 operating performance. PartnerRe Ltd. has the capability, expertise and access to various global geographies so that it can write a diverse book of business to help drive solid long-term results. Partially offsetting these positive rating attributes is PartnerRe Ltd.’s limited primary capability. Given the current market dynamics the reinsurance sector faces significant pricing pressure, third party capital taking a larger share of property catastrophe business and primary companies retaining more business; thus, a reinsurance organization without significant dual capabilities may be somewhat disadvantaged to withstand these current headwinds. A.M. Best considers the reinsurance industry to be at an inflection point. These current market trends and PartnerRe Ltd.’s strategy to successfully manage through them will continue to be monitored by A.M. Best. Factors that could result in a downgrading of the organization’s ratings and/or a revision of the outlook to negative include unfavorable operating results relative to the market or an altered view of its enterprise risk management 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 the 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 *PartnerRe America Insurance Company 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 unsecured debt *“bbb+” on subordinated debt *“bbb” on preferred stock PartnerRe Financial II, Inc. (guaranteed by PartnerRe Ltd.)— *“a-” on senior unsecured 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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best 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 Jim Peavy, 908-439-2200, ext. 5644 Assistant Vice President, Public Relations firstname.lastname@example.org
A.M. Best Affirms Ratings of PartnerRe Ltd. and Its Operating Subsidiaries
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