AM Best has affirmed the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit ratings (ICR) of “aa+” (Superior) for General Reinsurance Corporation and its core property/casualty and life reinsurance subsidiaries.
Collectively referred to as General Re Group, these entities operate in the United States and internationally. The long-term ICR of “aa+” (Superior) for General Re Corporation, a Delaware-based holding company, has also been affirmed. All ratings carry a stable outlook.
The ratings reflect Gen Re’s strongest balance sheet assessment, adequate operating performance, favorable business profile, and appropriate enterprise risk management, according to AM Best.
These strengths are further bolstered by Gen Re’s position as a wholly owned subsidiary of Berkshire Hathaway Inc, which provides additional financial flexibility and investment expertise.
Gen Re’s global operations include a diversified platform spanning property/casualty and life reinsurance sectors. This diversification supports the group’s stable underwriting results and overall performance, even during periods of heightened catastrophe losses in the reinsurance industry.
According to AM Best, Gen Re has capitalized on favorable market conditions in property/casualty reinsurance through sound underwriting decisions. The group’s life reinsurance business continues to contribute positively to earnings despite elevated mortality trends in certain regions.
AM Best expects Gen Re’s operating performance to remain solid, supported by underwriting strength and investment income, despite challenges such as inflationary pressures and climate-related risks.
While Gen Re’s investment portfolio has a relatively high allocation to equities, which can lead to occasional earnings volatility, it maintains strong long-term performance.
Gen Re’s balance sheet strength is underpinned by risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which remains consistent with the strongest assessment.
The group’s capital base has been bolstered by solid underwriting results and growing net investment income, despite dividends paid to its parent company, Berkshire Hathaway. Gen Re’s risk management framework oversees a wide range of risks across its global operations.
AM Best stated that Gen Re’s ratings reflect its position as a leading global reinsurance provider, supported by its diversified operations and the financial backing of Berkshire Hathaway. The stable outlook indicates expectations of continued strong operating performance and balance sheet resilience.
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