NU Online News Service, Feb. 9, 3:07 p.m. EST

Moody's Investors Service has downgraded PartnerRe's insurance financial strength rating to A1 from Aa3 due in part to the catastrophe losses the company suffered relative to most of its peers.

Moody's says the downgrade is also due to “a more conservative assessment of the firm's business profile relative to its larger, more diversified peers.”

PartnerRe recorded around $1.79 billion in pre-tax net losses from catastrophes, which drove a $642 million operating loss attributable to common shareholders for the year.

Moody's says that PartnerRe's risk profile in relation to its capital base has improved and should reduce earnings volatility at the company going forward, but the ratings agency adds that the reduction in equity capital is an incremental negative for creditors.

“Additionally, while Moody's believes PartnerRe's market position and diversification, both by product and geography, are strong, in our opinion, the company's business franchise lacks the scale and degree of diversification of some of its larger peers,” Moody's says.

A PartnerRe spokesperson did not return a call for comment.

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Moody&rsquo;s Downgrades PartnerRe on Cat Losses

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