A.M. Best Co. has commented that the financial strength rating of B++ (Very Good) and issuer credit rating of “bbb+” of Converium AG (Switzerland) and all its debt ratings remain unaffected following Tuesday’s publication of the company’s 2004 results.
The reported net loss of USD 761 million for the year is toward the higher end of the range anticipated by A.M. Best.
Therefore, the loss is factored into Converium’s current ratings, although the company remains under strong pressure following substantial reserve deterioration in the course of 2004 and high exposure to catastrophe losses in the final quarter.
In addition, recent senior management changes will lead to considerable challenges for the company going forward, which may affect the ratings.
A.M. Best will continue to closely monitor the company.
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