AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Renaissance Reinsurance Ltd. (RenaissanceRe), Renaissance Reinsurance U.S. Inc. (Maryland), RenaissanceRe Specialty U.S. Ltd., Renaissance Reinsurance of Europe Unlimited Company (Dublin, Ireland) and RenaissanceRe Europe AG (Zurich, Switzerland) (formally named Tokio Millennium Re AG). Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of RenaissanceRe Holdings Ltd. [NYSE: RNR]. AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of DaVinci Reinsurance Ltd. (DaVinci) and the Long-Term ICR of “bbb+” (Good) of DaVinciRe Holdings Ltd. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Vermeer Reinsurance Ltd. (Vermeer). The outlook of these Credit Ratings (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 assesses 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 assesses 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 company’s ability to maintain risk-adjusted capitalization supportive of the very strong overall balance sheet strength assessment when that capitalization is stress tested for catastrophe exposure. DaVinci’s profile is enhanced due to its affiliation to RenaissanceRe.

The ratings of Vermeer reflect its balance sheet strength, which AM Best assesses 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, modeling capabilities and as a pioneer in third-party capital management. RenaissanceRe remains a leader in the property catastrophe reinsurance segment and maintains a strong reputation in evaluating risk and effectively deploying capital, and as a result, 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 global catastrophe events, which have pressured results in recent years. RenaissanceRe’s underwriting results and overall operating performance have, nevertheless, continued to outpace its peers in most periods. AM Best attributes this to the company’s superior risk selection and industry-leading risk management capabilities, as well as to its significant and growing proportion of casualty, specialty, and non-catastrophe exposed property business, which now comprises the majority of its underwriting portfolio. Looking forward, RenaissanceRe appears well-positioned to benefit from ongoing broad-based pricing improvement in most of its key product lines.

The following Long-Term IRs have affirmed with stable outlooks:

RenaissanceRe Holdings Ltd.

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

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

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

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

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

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

RenaissanceRe Holdings Ltd.

-- “a-” (Excellent) on senior unsecured

-- “bbb+” (Good) on subordinated

-- “bbb” (Good) on preferred stock

RenaissanceRe Capital Trust II

-- “bbb” (Good) 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 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. For more information, visit www.ambest.com.

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