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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 29, 2019 12:05 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 and life reinsurance/insurance subsidiaries operating in the United States and internationally. These companies collectively are known as the General Re Group (Gen Re). In addition, AM Best has affirmed the Long-Term ICR of “aa+” of General Re Corporation. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of these companies and ratings.)
The ratings reflect Gen Re’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management. Gen Re has an operating platform that is well-diversified by geography and product, including property/casualty and life business segments with worldwide market profiles. This platform is supported by consistently superior risk-based capitalization, which has delivered consistent 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 further enhanced as a result of Gen Re being a wholly owned subsidiary of Berkshire Hathaway Inc., providing additional financial flexibility and investment expertise. In 2016, Gen Re entered into a partnership agreement with an unaffiliated global reinsurer in order to access property/casualty treaty broker market business in the United States and Canada. This deal signifies Gen Re’s shift in approach to the market over the past few years.
Gen Re’s life operations primarily consist of individual life insurance and accident and health reinsurance lines of business. The life operations have grown in recent years and the investment portfolio has performed well. In October 2017, Gen Re Life entered into a 100% quota share with affiliate National Indemnity Company, covering the entirety of its long-term care liabilities. The life operations are expected to remain an important source of income and diversification for Gen Re.
Negative rating actions could occur if Gen Re’s operating performance and risk-adjusted capitalization consistently fall below AM Best’s expectations for its current rating level for a prolonged period.
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed for General Reinsurance Corporation and its following core property/casualty and life reinsurance/insurance subsidiaries:
The FSR of A- (Excellent) and the Long-Term ICR of “a-” have been affirmed with stable outlooks for IdeaLife Insurance Company (Stamford, CT), a subsidiary of General Re Life Corporation.
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.