Press Release - MARCH 22, 2019

AM Best Removes from Under Review, Affirms Credit Ratings of RenaissanceRe Holdings Ltd and Its Main Subsidiaries


CONTACTS:
 Mariza Costa
Senior Financial Analyst
+1 908 439 2200, ext. 5154
mariza.costa@ambest.com

Robert DeRose
Senior Director
+1 908 439 2200, ext. 5453
robert.derose@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MARCH 22, 2019
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Renaissance Reinsurance Ltd. (RenaissanceRe), Renaissance Reinsurance U.S. Inc. (RenaissanceRe U.S.), RenaissanceRe Specialty U.S. Ltd. (RenaissanceRe Specialty U.S. Ltd.), and Renaissance Reinsurance of Europe Unlimited Company (Dublin, Ireland). Additionally, AM Best has removed from under review with developing implications and affirmed the Long-Term ICR of “a-” and most Long-Term Issue Credit Ratings (Long-Term IR) of RenaissanceRe Holdings Ltd [NYSE: RNR]. Concurrently, the Credit Ratings (ratings) of Tokio Millennium Re AG (Zurich, Switzerland) (to be renamed RenaissanceRe Europe AG) have been aligned with the entities of RenaissanceRe and, as such, have been removed from under review with developing implications and affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-”. The outlook assigned to these ratings is stable.

AM Best also has removed from under review with developing implications and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of DaVinci Reinsurance Ltd. (DaVinci) and the Long-Term ICR of “bbb+” of DaVinciRe Holdings Ltd. The outlook assigned to these ratings is stable. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of Vermeer Reinsurance Ltd (Vermeer). The outlook of these ratings is stable. All aforementioned companies are domiciled in Bermuda unless otherwise specified. (See below for a detailed listing of the Long-Term IRs.)

The ratings of RenaissanceRe reflect the group’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and very strong enterprise risk management (ERM).

The ratings of DaVinci reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and very strong ERM. The ratings also recognize DaVinci’s solid operating performance over the past several years and the maintenance of its very strong risk-adjusted capitalization. DaVinci’s profile is enhanced due to its affiliation to RenaissanceRe.

The ratings reflect Vermeer’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and very strong ERM.

The ratings of RenaissanceRe also reflect its superior level of risk-adjusted capitalization, the strength and depth of its management team and the ability of the company to deliver strong, long-term profitability over the course of the market cycle. RenaissanceRe is widely recognized for its leadership in ERM and as a pioneer in third-party capital management. RenaissanceRe remains a leader in property catastrophe and maintains a strong reputation in evaluating risk and effectively deploying capital, and as such, has attracted capital from outside investors to form several successful joint ventures, including DaVinci, Top Layer Reinsurance Ltd. and Vermeer.

Partially offsetting these strengths is RenaissanceRe’s exposure to high severity losses associated with catastrophe events around the globe. In addition, the global reinsurance market, and specifically the property catastrophe segment, has experienced overcapacity and pricing pressures over the past few years that in turn has placed pressure on overall returns.

The following Long-Term IR has been assigned with a stable outlook:

RenaissanceRe Holdings Ltd.

— “bbb” on $250 million 5.75% non-cumulative fixed rate Series F perpetual preferred stock

The following Long-Term IRs have been removed from under review with developing implications and affirmed with a stable outlook assigned:

RenaissanceRe Holdings Ltd.

— “bbb” on $250 million 6.08% Series C perpetual preferred stock ($125 million outstanding)

— “bbb” on $275 million 5.375% non-cumulative Series E perpetual preferred stock

RenaissanceRe North American Holdings Inc. (guaranteed by RenaissanceRe Holdings Ltd.)

— “a-” on $250 million 5.75% senior unsecured notes, due 2020

RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.)

— “a-” on $300 million 3.7% senior unsecured notes, due 2025

— “a-” on $300 million 3.45% senior unsecured notes, due 2027

The following indicative Long-Term IRs under the shelf registration have been removed from under review with developing implications and affirmed with a stable outlook assigned:

RenaissanceRe Holdings Ltd.

— “a-” on senior unsecured

— “bbb+” on subordinated

— “bbb” on preferred stock

RenaissanceRe Capital Trust II

— “bbb” on trust preferred securities

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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry.


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