Best puts RenaissanceRe on negative review pending Platinum deal

Financial ratings agency A.M. Best Co. Inc. has placed certain units of RenaissanceRe Holdings Ltd. under review with negative implications in the wake of its $1.9 billion offer to buy Platinum Underwriters Bermuda Ltd., saying RenRe's move into casualty lines is outside of its core competency.

Best placed the A+ financial strength ratings of Renaissance Reinsurance Ltd. and Renaissance Reinsurance of Europe (Dublin) under review, along with the A financial strength ratings of RenaissanceRe Specialty Risks Ltd., and RenaissanceRe Specialty U.S. Ltd. and DaVinci Reinsurance Ltd.

RenRe's proposed acquisition of Platinum “represents a significant commitment on the part of RenaissanceRe to continue its move into casualty business, which is outside of the organization's core competency of property catastrophe reinsurance,” Best said Tuesday in a statement.

“The under review status is based on the recent announcement that RenaissanceRe has entered into a definitive agreement to purchase Platinum Underwriters Holdings Ltd.,” Best said in the statement. “The under review status will be removed once the deal closes and A.M. Best completes its analysis.”

At the same time, Best has placed under review with developing implications the A financial strength rating of Platinum Underwriters Bermuda, Ltd.

“The under review with developing implications status reflects the limited information available regarding the transaction and the uncertainty around RenaissanceRe's future plans for Platinum,” Best said in a separate statement Tuesday.