The ratings of RenRe Specialty Risks, RenRe US and RenRe Specialty US Ltd. acknowledge their strong risk-adjusted capitalization, sound business plans and strategic positioning for writing casualty specialty risks. The ratings are enhanced based on implicit and explicit support. In addition, the aforementioned companies' profiles are enhanced due to their affiliation and branding as RenRe companies.Offsetting these strengths is RenRe's exposure to high severity losses associated with catastrophic events. The global reinsurance market in general, and specifically the property catastrophe segment, has been experiencing overcapacity and resulting price pressures on rates that have pressured historically high return measures. The negative outlooks on the ICRs of RenRe and DaVinci reflect these adverse market conditions. The pricing pressure coupled with the flow of alternative capital and increased retentions of primary companies have exacerbated the pressure on return measures, which may be sustained for a long period of time. This pressure rationalizes RenaissanceRe's acquisition of Platinum Underwriters Holdings, Ltd. in 2015. RenRe's strategy to diversify its core property catastrophe book of business is ongoing. Factors that could return the negative outlooks to stable include superior operating results coupled with strong risk-adjusted capitalization over the long term. Factors that could lead to a downgrade include outsized catastrophe or investment losses, weak or strained risk-adjusted capitalization or continued downward pressure on property catastrophe rates, which is currently the organizations main line of business. The following issue ratings have been affirmed with a negative outlook: RenaissanceRe Holdings Ltd.—-- "bbb" on $250 million 6.08% Series C perpetual preferred stock-- "bbb" on $275 million 5.375% Series E perpetual preferred stock RenaissanceRe North American Holdings Inc. (guaranteed by RenaissanceRe Holdings Ltd.)—-- "a-" on $250 million 5.75% senior unsecured notes, due 2020 Platinum Underwriters Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.) --- "a-" on $250 million 7.5% senior unsecured notes, due 2017 RenaissanceRe Finance Inc. (guaranteed by RenaissanceRe Holdings Ltd.) --- "a-" on $300 million 3.7% senior unsecured notes, due 2025 The following indicative shelf issue ratings have been affirmed with a negative outlook:
RenaissanceRe Holdings Ltd.—-- "a-" on senior unsecured-- "bbb+" on subordinated-- "bbb" on preferred stockRenaissanceRe Capital Trust II—-- "bbb" on trust preferred securities This press release relates to rating(s) that have been published on A.M. 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 A.M. Best's Recent Rating Activity web page. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.