MARCH 26, 2021 03:01 PM (EDT)
AM Best Affirms Credit Ratings of General Reinsurance Corp. and Its Subsidiaries; Withdraws Ratings of IdeaLife Insurance Co.
|Gregory Dickerson |
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 26, 2021 03:01 PM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” 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 the 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+” of General Re Corporation (Delaware). Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of IdeaLife Insurance Company (IdeaLife) (Stamford, CT), a subsidiary of General Re Life Corporation. The outlook of these ratings is stable. Concurrently, AM Best has withdrawn the ratings of IdeaLife as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings of Gen Re reflect its 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 (ERM). Gen Re’s ratings also benefit from one notch of lift, reflecting implicit and explicit support from its ultimate parent, Berkshire Hathaway Inc. (Berkshire Hathaway).
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 business segments. This diversification is reflected in the group’s steady underwriting and overall operating performance, including periods in which the industry has experienced unusually high catastrophe losses. 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 that has supported its steady operating performance over time. 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 ratings of IdeaLife reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate ERM. The ratings also reflect the strength and support of Berkshire Hathaway’s insurance operations.
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed for General Reinsurance Corporation and its following core P/C and life (re)insurance subsidiaries:
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.