A.M. Best Co. announced that it has affirmed the financial strength rating of “A-” (Excellent) of Cayman Islands-based Island Heritage Insurance Company Ltd., has removed the rating from under review and assigned it a stable outlook.
“This rating action follows A.M. Best’s review of Island Heritage’s range of probable losses emanating from Hurricane Ivan and the impact on its capital in conjunction with the presentation of a formal recapitalization plan,” said Best. “The recapitalization plan anticipates the raising of $8 million through a rights offering to existing shareholders. Major shareholders representing 89 percent of the company’s ownership have indicated full participation in the offering, with some major shareholders also indicating a willingness to increase their share allotments should minority shareholders fail to fully participate.”
Best said it expects the capital transaction to be completed within the next two to three weeks, and that it meets the rating agency’s capital strengthening expectations, and fully supports the current financial strength rating.
“Island Heritage’s financial strength rating was placed under review on September 15, 2004, due to the uncertainty surrounding the ultimate loss exposure from Hurricane Ivan and its impact on the capitalization of the company,” Best noted.
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