Moody's gives Baa2 (hyb) to PartnerRe preferred stock

Moody's Investors Service said it assigned a Baa2 (hyb) rating to PartnerRe Ltd.'s issuance of series F non-cumulative preferred shares and affirmed the company's existing preferred stock at Baa2(hyb), PartnerRe Finance II Inc.'s junior subordinated debt at Baa1(hyb) and PartnerRe Finance A LLC's and PartnerRe Finance B LLC's guaranteed senior debt at A3. The outlook is stable.

The agency said PartnerRe's ratings reflect the company's strong franchise as a leading international property-casualty reinsurer, the group's leadership position in specialty reinsurance lines, its diversified book both by geography and by line of business and its high-quality investment portfolio and prudent reserving philosophy.

In Moody's view, these strengths are tempered by the group's significant gross lines risk retentions, which can contribute to volatility in earnings, and by its higher than average underwriting risk profile, particularly in property-catastrophe reinsurance.

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