Parent company's considerable resources a major contributor to the assessment
By Kenneth Araullo
Jan 26, 2024 ShareNew York-based Transatlantic Reinsurance Company (TransRe) and its subsidiaries have received the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit ratings (Long-Term ICRs) of “aa+” (Superior), as per AM Best.
Additionally, the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of “a+” (Excellent) have been affirmed for Alleghany Corporation and Transatlantic Holdings, Inc. These ratings have been assigned with a stable outlook.
The ratings for TransRe are reflective of the reinsurer’s strong balance sheet, which AM Best evaluates as being at the strongest level. This assessment is bolstered by TransRe’s consistent risk-adjusted capitalization and the substantial internal reinsurance support from its ultimate parent, Berkshire Hathaway Inc. The agency noted that Berkshire Hathaway’s considerable financial resources and flexibility contribute significantly to this assessment.
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TransRe’s balance sheet is further strengthened by a history of favorable loss reserve development, indicating a prudent approach to establishing initial loss estimates. The underwriting performance of TransRe has been robust, benefiting from favorable conditions in the reinsurance market across several key business lines.
The group has also strategically reduced its exposure to natural catastrophe losses in recent years, which has effectively mitigated volatility in its underwriting performance, particularly at times of heightened activity in the global reinsurance industry.
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