PartnerRe Ltd has had its ratings affirmed on the eve of its $9 billion sale to French mutual insurer Covéa.

AM Best affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit rating of “aa-” (Superior) of the operating subsidiaries of the Bermudian-based reinsurer.

Concurrently, the ratings agency has affirmed the long-term ICR of “a-” (Excellent) of PartnerRe Ltd. The outlook of these credit ratings is stable.

The ratings affirmation reflects PartnerRe’s solid operating performance in 2021 and AM Best’s expectation that the group’s pending sale to Covéa Coopérations will not result in any near-term deterioration in its balance sheet strength.

PartnerRe owner Exor’s on-again off-again sale of the reinsurer to Covéa is expected to close in the middle of this year, the company said last December when it revealed that a memorandum of understanding had been signed.

AM Best said Partner Re has benefited from continued hardening market conditions in the international reinsurance market, while the group’s life and health reinsurance business continues to produce consistent modest returns.

The agency said it will continue to monitor PartnerRe through the close of its pending sale to Covéa Coop, and will take action if the credit characteristics vary from prior expectations.

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

The operating subsidiaries of PartnerRe Ltd 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.