AM Best has confirmed strong ratings for General Reinsurance Corporation and its subsidiaries, attributed to stable underwriting results and operational performance.
The credit agency has reaffirmed General Re Group’s (Gen Re) superior Financial Strength Rating (FSR) of A++ and its Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+”. These ratings apply to the Stamford, Connecticut-based reinsurance group, highlighting its stability and reliability in the industry.
Furthermore, AM Best has also affirmed the Long-Term ICR of “aa+” for General Re Corporation (Delaware), with all ratings maintaining a stable outlook.
Gen Re’s impressive ratings are attributed to several factors, including favorable market conditions in the property/casualty reinsurance sector and a reduction in catastrophe losses in 2023. Additionally, the company’s life reinsurance operations made significant contributions to its overall earnings for the year.
AM Best foresees Gen Re’s operational performance continuing to bolster its rating in the foreseeable future. Despite a somewhat higher allocation to equity investments, which introduces a degree of volatility to investment-related earnings, the long-term returns of the group’s investment portfolio remain strong.
These ratings are further supported by Gen Re’s robust balance sheet, which AM Best describes as the strongest in the sector. This, combined with its consistent operating performance, comprehensive business profile, and effective enterprise risk management, strengthens Gen Re’s position in the market. The company benefits from a global presence and diversified operations across various geographic and product lines in both property/casualty and life reinsurance sectors.
Gen Re’s solid capital position has been a key factor in its consistent operating performance. Despite distributing a substantial $1.1 billion dividend to its parent company, Berkshire Hathaway Inc., in 2023, the company still experienced significant capital growth. Additionally, Gen Re benefits from a comprehensive risk management framework that oversees risks across its global operations.
Furthermore, Gen Re’s status as a wholly-owned subsidiary of Berkshire Hathaway adds another layer of financial stability and access to expertise in investment matters.
AM Best’s stable outlook reflects its confidence in Gen Re’s ongoing financial strength and operational effectiveness across its global network.
