We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RenaissanceRe & Units Receive Ratings Action from A.M Best
Read MoreHide Full Article
RenaissanceRe Holdings Ltd. (RNR - Free Report) and its subsidiaries recently received rating action from credit rating giant, A.M. Best. The rating agency affirmed the issuer credit ratings (ICR) of “a-” and all the issue ratings of the company. The financial strength rating (FSR) and ICR of its units Renaissance Reinsurance Ltd. and Renaissance Reinsurance of Europe were reaffirmed at A+ and aa- respectively, with a negative outlook.
In addition, the rating agency affirmed the FSR of A (Excellent) and the ICR of “a+” of DaVinci Reinsurance Ltd (DaVinci), an affiliate of RenaissanceRe. For another unit, DaVinci Re Holdings Ltd., ICR was also reiterated at “bbb+”. Though the outlook for the FSR of of DaVinci remained stable e, its ICR along with DaVinci Re Holdings Ltd. was revised to negative.
RenaissanceRe Specialty Risks Ltd., another subsidiary of the insurer, also received FSR of A (Excellent) and the ICR of “a”, with a stable outlook for both. Moreover, A.M Best reiterated FSR of A (Excellent) and the ICR of “a” for RenaissanceRe Specialty US Ltd, another unit of RenaissanceRe. The outlook for the ratings of this unit also remained stable. Though the ICR of Renaissance Reinsurance US Inc. was upgraded to “a+” from “a”, the FSR of the affiliate was reiterated at A.
The affirmations came on the back of the insurer’s sturdy risk-adjusted capitalization, strong management and potential for long-term profitability. RenaissanceRe’s extraordinary command on enterprise risk management and third-party capital management helped it to establish a significance presence in the Property and Casualty market and make attract investments.
Likewise, DaVinci Reinsurance’s robust operating performance over the past several years and maintenance of its strong risk-adjusted capitalization helped it earn recognition. Stout business plans and potential for writing casualty specialty risks, along with commendable risk-adjusted capitalization, contributed to the strategic position of these subsidiaries.
However, RenaissanceRe’s continuous exposure to high severity losses associated with catastrophic events jeopardizes profitability. The overcapacity and pricing pressures in the property catastrophe market also remains a headwind. The negative outlook for few of its subsidiaries clearly reflects the unfavorable market condition that integrates the pricing pressure with the flow of alternative capital and increased retentions of primary companies. All of these together is expected to result a weaker global reinsurance market scenario over the next few years.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence as well as in maintaining credit worthiness in the market. On the other hand, rating downgrades damage business, apart from increasing the cost of future debt issuances. We believe the ratings will help RenaissanceRe to retain investor confidence and help it in writing more businesses, going forward.
Currently, RenaissanceRe carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same space include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RenaissanceRe & Units Receive Ratings Action from A.M Best
RenaissanceRe Holdings Ltd. (RNR - Free Report) and its subsidiaries recently received rating action from credit rating giant, A.M. Best. The rating agency affirmed the issuer credit ratings (ICR) of “a-” and all the issue ratings of the company.
The financial strength rating (FSR) and ICR of its units Renaissance Reinsurance Ltd. and Renaissance Reinsurance of Europe were reaffirmed at A+ and aa- respectively, with a negative outlook.
In addition, the rating agency affirmed the FSR of A (Excellent) and the ICR of “a+” of DaVinci Reinsurance Ltd (DaVinci), an affiliate of RenaissanceRe. For another unit, DaVinci Re Holdings Ltd., ICR was also reiterated at “bbb+”. Though the outlook for the FSR of of DaVinci remained stable e, its ICR along with DaVinci Re Holdings Ltd. was revised to negative.
RenaissanceRe Specialty Risks Ltd., another subsidiary of the insurer, also received FSR of A (Excellent) and the ICR of “a”, with a stable outlook for both. Moreover, A.M Best reiterated FSR of A (Excellent) and the ICR of “a” for RenaissanceRe Specialty US Ltd, another unit of RenaissanceRe. The outlook for the ratings of this unit also remained stable. Though the ICR of Renaissance Reinsurance US Inc. was upgraded to “a+” from “a”, the FSR of the affiliate was reiterated at A.
The affirmations came on the back of the insurer’s sturdy risk-adjusted capitalization, strong management and potential for long-term profitability. RenaissanceRe’s extraordinary command on enterprise risk management and third-party capital management helped it to establish a significance presence in the Property and Casualty market and make attract investments.
Likewise, DaVinci Reinsurance’s robust operating performance over the past several years and maintenance of its strong risk-adjusted capitalization helped it earn recognition. Stout business plans and potential for writing casualty specialty risks, along with commendable risk-adjusted capitalization, contributed to the strategic position of these subsidiaries.
However, RenaissanceRe’s continuous exposure to high severity losses associated with catastrophic events jeopardizes profitability. The overcapacity and pricing pressures in the property catastrophe market also remains a headwind. The negative outlook for few of its subsidiaries clearly reflects the unfavorable market condition that integrates the pricing pressure with the flow of alternative capital and increased retentions of primary companies. All of these together is expected to result a weaker global reinsurance market scenario over the next few years.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence as well as in maintaining credit worthiness in the market. On the other hand, rating downgrades damage business, apart from increasing the cost of future debt issuances. We believe the ratings will help RenaissanceRe to retain investor confidence and help it in writing more businesses, going forward.
RENAISSANCERE Price
RENAISSANCERE Price | RENAISSANCERE Quote
Zacks Rank and Stocks to Consider
Currently, RenaissanceRe carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same space include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>