AM Best has confirmed strong ratings for General Reinsurance Corporation and its subsidiaries, attributed to stable underwriting results and operational performance.
The credit agency affirmed the superior Financial Strength Rating (FSR) of A++ and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” for Stamford, Connecticut-based reinsurance group, also known as General Re Group (Gen Re).
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AM Best also affirmed the Long-Term ICR of “aa+” for General Re Corporation (Delaware), with all ratings maintaining a stable outlook.
Gen Re’s ratings were attributed to favorable market conditions in the property/casualty reinsurance sector and reduced catastrophe losses in 2023. The life reinsurance operations of Gen Re also significantly contributed to the company’s earnings for the year.
AM Best anticipates that Gen Re’s operational performance will continue to support the company’s rating in the future. Despite a relatively high allocation to equity investments which introduces some volatility to investment-related earnings, the long-term returns of the group’s investment portfolio remain robust.
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These ratings are also supported by Gen Re’s robust balance sheet, described by AM Best as the strongest in the sector, combined with its consistent operating performance, comprehensive business profile, and effective enterprise risk management. The group benefits from a global presence and diversified operations across geographic and product lines in the property/casualty and life reinsurance sectors.
The company’s strong capital position, as explained by AM Best, has underpinned its consistent operating performance. In 2023, Gen Re enjoyed significant capital growth, even after distributing a $1.1 billion dividend to its parent company, Berkshire Hathaway Inc. Moreover, Gen Re benefits from a comprehensive risk management framework that monitors risk across its global operations.
This positive assessment is further bolstered by Gen Re’s status as a wholly-owned subsidiary of Berkshire Hathaway, which provides additional financial stability and access to investment acumen.
AM Best’s stable outlook reflects its confidence in Gen Re’s continued financial robustness and operational efficacy across its global network.
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