A.M. Best Affirms Ratings of PartnerRe Ltd. and Its Operating Subsidiaries

  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

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

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.


A.M. Best
Greg Reisner, 908-439-2200, ext. 5224
Managing Senior Financial Analyst
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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