AM Best Affirms Credit Ratings of General Reinsurance Corporation and Its Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa+" (Superior) of General Reinsurance Corporation (headquartered in Stamford, CT) and its core property/casualty (P/C) and life (re)insurance subsidiaries operating in the United States and internationally. These companies collectively are known as General Re Group (Gen Re). (Please see below for a detailed listing of these companies and Credit Ratings [ratings].) In addition, AM Best has affirmed the Long-Term ICR of "aa+" (Superior) of General Re Corporation (Delaware). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Gen Re's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management.
Gen Re has a global footprint with a well-diversified platform by geography and product offerings, including an international reach in the P/C and life (re)insurance business segments. This diversification is reflected in the stability of the group's underwriting results and overall operating performance during periods when the reinsurance industry is impacted by unusually high catastrophe losses. Gen Re's favorable operating performance in 2023 reflects the benefit of overall favorable market conditions in the P/C reinsurance space, as well as lower catastrophe losses during the period. Gen Re's life (re)insurance operations also made a solid contribution to earnings in 2023. AM Best expects that Gen Re's overall operating performance should remain solidly supportive of its current assessment for the foreseeable future. The group's relatively high allocation to equity investments presents occasional investment-related earnings volatility, but the long-term performance of the group's investment portfolio is strong.
Gen Re's platform is supported by consistently superior risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which has supported its steady operating performance over time. Favorable operating results and a rebound in investment valuations led to strong capital appreciation in 2023, despite the payment of a $1.1 billion dividend to Gen Re's publicly traded parent, Berkshire Hathaway Inc. (NYSE:BRK). Gen Re also maintains an extensive risk management program that oversees all aspects of risk throughout its worldwide operations. These positive rating attributes are enhanced further as a result of Gen Re being a wholly owned subsidiary of Berkshire Hathaway, providing additional financial flexibility and investment expertise.
The FSR of A++ (Superior) and the Long-Term ICRs of "aa+" (Superior) have been affirmed for General Reinsurance Corporation and its following core P/C and life (re)insurance subsidiaries:
- General Re Life Corporation
- General Reinsurance Australia Ltd.
- General Reinsurance Life Australia Ltd.
- General Reinsurance AG
- General Reinsurance Africa Ltd.
- General Star Indemnity Company
- General Star National Insurance Company
- Genesis Insurance Company
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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