A.M. Best Co. announced that it has assigned a “bbb”debt rating on the $250 million 6.08 percent perpetual preferred stock, recently issued by Bermuda property reinsurer RenaissanceRe Holdings Ltd.
Best also affirmed all existing debt ratings, and indicated that the action on the company’s debt ratings has no effect on the financial strength ratings of its operating subsidiaries. Best’s outlook for all the ratings remains stable.
“This security is redeemable by RenaissanceRe five years after issuance,” said Best. “The net proceeds will be used by RenaissanceRe for general corporate purposes. Following the issuance of these securities, RenaissanceRe’s financial leverage鈥攄ebt plus preferred securities as a percentage of total adjusted capital鈥攔emains in the 30 percent range, which is commensurate with its current debt ratings. A.M. Best will complete its annual review of RenaissanceRe in the near term.”
In more specific terms Best said the financial strength ratings of “A+” (Superior) are unaffected for the following Ren Re operating subsidiaries:
— Renaissance Reinsurance Ltd.
— Renaissance Reinsurance of Europe
The financial strength ratings of “A” (Excellent) are likewise unaffected for the following Ren Re operating subsidiaries:
— Glencoe Insurance Ltd.
— Stonington Insurance Company
— Lantana Insurance Ltd.
— Overseas Partners Cat Limited
— Stonington Lloyds Insurance Company
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