S&P shifts PartnerRe view to stable

S&P said it changed PartnerRe Ltd.’s outlook to stable from negative and its operating companies.

The outlook change follows Covea group, rated AA-, announcing plans to acquire PartnerRe and its subsidiaries from EXOR for $9 billion, S&P said.

“Subsequent to the acquisition, PartnerRe would benefit from stronger support as part of a higher-rated group with a strong balance sheet, which can offset potential pressures on PartnerRe's stand-alone credit profile in view of sub-par underwriting performance in recent years. We expect PartnerRe's underwriting initiatives will translate into meaningful improvement in the company's property-casualty underwriting performance, but it will take some time for the outcome to emerge, and execution risks remain,” S&P said in a press release.

The agency also affirmed the A- long-term issuer credit rating on PartnerRe and the issuer credit ratings on its core subsidiaries.

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