A.M. Best Co. has placed the financial strength rating of “A-” (Excellent) and the issuer credit rating of “a-“of Swiss reinsurer Glacier Reinsurance AG under review with negative implications.
“The rating action is due to Glacier Re’s 2005 year-end net loss, which was in excess of A.M. Best’s expectations as a result of higher than anticipated exposure to 2005 hurricane losses,” the announcement explained. In addition Best said it “believes Glacier Re’s natural catastrophe exposure in 2006 is also higher than previously anticipated.”
The rating agency indicated that the “current ratings will remain under review with negative implications in order to assess the potential impact on Glacier Re’s risk-adjusted capitalization and pending further discussion with the company regarding catastrophe risk management and the restoration of its risk-adjusted capitalization.
“A.M. Best closely monitors new company formations. Any deviations in earnings, capitalization, risk profile or management from the presentations made in the business plans used by A.M. Best to issue initial ratings are analyzed for the effect these have on the company’s ability to meet financial obligations.”
Was this article valuable?
Here are more articles you may enjoy.
Advocacy Groups Ask FIO to Release Homeowners Insurance Data Collected by NAIC 
Here’s a Look at the $100 Billion in Disaster Relief in the Government Spending Bill 
Senate Says Climate Is Driving Insurance Non-renewals; Industry Strikes Back 
Baltic Sea Countries to Check Insurance on Tankers Moving Russian Oil 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.