Ratings agency AM Best has affirmed the financial strength rating of A+ (Superior) of the operating subsidiaries of Bermudian-based re/insurer PartnerRe Ltd.

The agency also affirmed the long-term issuer credit rating of “aa-” of the operating subsidiaries, and affirmed the long-term ICR of “a-” of PartnerRe Ltd.

The outlook for these credit ratings is stable, it said.

The agency said the ratings reflect PartnerRe’s balance sheet strength, which it assesses as “strongest”, as well as its adequate operating performance, very favourable business profile and appropriate enterprise risk management.

AM Best said: “The affirmation follows a year of adverse weather conditions and the Covid-19 pandemic, which put stress on underwriting and investment results. Despite this pressure, PartnerRe was able to produce a modest net income and gain traction in various company initiatives.

“Additionally, the group was able to expand their use of third-party capital further and refinance multiple debt issues at improved rates, thus improving overall cost of capital.

“However, the group did experience minor adverse reserve development in 2020, which PartnerRe has largely been immune from over the last few years. This development already has been addressed through prospective and retrospective actions.

“While AM Best is comfortable with the actions taken, further deterioration in reserving or in underwriting trends could put pressure on the ratings.”

AM Best said the operating subsidiaries to which the ratings apply are Partner Reinsurance Company Ltd, Partner Reinsurance Company of the US, PartnerRe Ireland Insurance Designated Activity Company, Partner Reinsurance Europe SE, PartnerRe America Insurance Company, PartnerRe Life Reinsurance Company of Canada, and PartnerRe Life Reinsurance Company of America.