A.M. Best Rates RenaissanceRe's $400 Million Shelf Registration.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 16, 2001 A.M. Best Co. has assigned indicative ratings of "a" senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. , "a-" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". , "a-" junior subordinated/trust preferred securities and "bbb+" preferred securities to RenaissanceRe Holdings Ltd. (NYSE NYSE See: New York Stock Exchange - RNR RNR Rock 'N Roll RNR Royal Naval Reserve RNR Ribonucleotide Reductase RNR Receive Not Ready (ITU-T; ISDN) RNR Research News Reporter RNR Rest and Relaxation RNR Registry of Nursing Research RNR Rest and Recreation ), Bermuda on its recently filed $400 million shelf registration. Also, A.M. Best affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength ratings of the company's subsidiaries as well as the existing debt ratings as listed below. Proceeds from the offering will be used for general corporate purposes. As of June 30, 2001, financial leverage--debt plus preferred securities as a percent of total adjusted capital-- remained comfortably under 20%, supported by a fixed charge coverage in the mid-teens. On July 12, 2001, RenaissanceRe issued $150 million of 7% Senior Notes due in 2008. A.M. Best's expectation is that the company will maintain financial leverage in the low to mid 30% range and achieve a fixed charge coverage in the mid single digit range or higher. The ratings reflect RenaissanceRe's consistently strong earnings trends, superior risk management capabilities, conservative balance sheet strategies and recognized leadership position in the worldwide property catastrophe reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. market. These positive rating factors are derived from RenaissanceRe's experienced management team, highly disciplined underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. focus and strong risk evaluation capabilities, supported by a proprietary pricing and exposure management system. Such positive factors were highlighted in the recent World Trade Center attacks, as RenaissanceRe's estimated net losses from the disaster amounted to only $50 million, or 6.5% of capital. Despite the high frequency and severity of catastrophic events in recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company's extensive catastrophe management capabilities continue to be manifested by consistently superior results relative to its peers. RenaissanceRe's globally diversified asset base as well as its strategic partnerships mitigate its concentration in the property catastrophe reinsurance market. A.M. Best believes the company is well positioned to sustain a superior level of financial performance relative to its peers and expects it to continue to generate solid operating returns due to demonstrated risk management expertise and conservative underwriting criteria. RenaissanceRe Holdings Ltd., is a holding company which, through Renaissance Reinsurance Ltd., operates as a property catastrophe reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. on a worldwide basis. At June 30, 2001, the holding company reported assets of $1.7 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $774 million. The following indicative debt ratings were assigned: RenaissanceRe Holdings Ltd. -- Senior unsecured debt rating of "a" -- Subordinated debt rating of "a-" -- Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. rating of "bbb+" RenaissanceRe Capital Trust II -- Trust preferred securities rating of "a-" The following debt ratings were affirmed: RenaissanceRe Holdings Ltd. -- "a" rating on $150 million Senior Notes RenaissanceRe Capital Trust -- "bbb+" rating on 8.54% Guaranteed Preferred Trust Securities, due 2027 RenaissanceRe Holdings Ltd. (shelf registration) -- "a" indicative senior debt rating -- "a-" indicative subordinated debt rating -- "bbb" indicative preferred stock rating RenaissanceRe Capital Trust II (shelf registration) -- "bbb+" indicative trust preferred rating The following financial strength ratings were affirmed: -- Renaissance Reinsurance Ltd., Bermuda -- A+ (Superior) -- Renaissance Reinsurance of Europe, Ireland -- A+ (Superior) -- Glencoe Insurance Ltd., Bermuda -- A- (Excellent) -- Nobel Insurance Company, Dallas -- B+ (Very Good) A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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