AM Best Affirms Credit Ratings of General Reinsurance Corporation and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of General Reinsurance Corporation (headquartered in Stamford, CT) and its core property/casualty (P/C) and life (re)insurance subsidiaries operating in the United States and internationally. These companies collectively are known as General Re Group (Gen Re). (Please see below for a detailed listing of these companies and Credit Ratings [ratings].) In addition, AM Best has affirmed the Long-Term ICR of “aa+” (Superior) of General Re Corporation (Delaware). The outlook of these ratings is stable.

The ratings reflect Gen Re’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management. These positive rating attributes are enhanced further as a result of Gen Re being a wholly owned subsidiary of Berkshire Hathaway Inc. [NYSE: BRK.A and BRK.B], providing additional financial flexibility and investment expertise.

Gen Re has a global footprint with a well-diversified platform by geography and product offerings, including an international reach in the P/C and life (re)insurance business segments. This diversification is reflected in the stability of the group’s underwriting results and overall operating performance during periods when the reinsurance industry is impacted by unusually high catastrophe losses. Gen Re’s operating performance continues to benefit from sound underwriting decisions that have allowed the company to take advantage of overall favorable market conditions in the P/C reinsurance space. Gen Re’s life (re)insurance operations continue to add a solid contribution to earnings, despite elevated mortality trends in certain geographies. AM Best expects that Gen Re’s overall operating performance should remain solidly supportive of its current assessment for the foreseeable future, despite continued headwinds from adverse inflationary trends, as well as the persistent challenge presented by climate risk. The group’s relatively high allocation to equity investments presents occasional investment-related earnings volatility, but the long-term performance of the group’s investment portfolio is strong.

Gen Re’s platform is supported by risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), that has remained consistently in line with its strongest overall balance sheet strength assessment. Solid underwriting results, supplemented by increasing net investment income continue to drive capital appreciation, despite the payment of dividends to Gen Re’s publicly traded parent, Berkshire Hathaway Inc. Gen Re also maintains an extensive risk management program that oversees all aspects of risk throughout its worldwide operations.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” (Superior) have been affirmed for General Reinsurance Corporation and its following core P/C and life (re)insurance subsidiaries:

• General Re Life Corporation
• General Reinsurance Australia Ltd.
• General Reinsurance Life Australia Ltd.
• General Reinsurance AG
• General Reinsurance Africa Ltd.
• General Star Indemnity Company
• General Star National Insurance Company
• Genesis Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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