A.M. Best Co. announced that it has placed the financial strength ratings (FSR) of “A-” (Excellent) and the issuer credit ratings (ICR) of “a-” of Bermuda-based Rosemont Reinsurance Ltd. under review with negative implications.
“These rating actions follow the recent announcements by Rosemont that net losses attributable to Hurricane Katrina are projected to be in the $25 million to $30 million range and that marine energy losses for Hurricane Ivan had deteriorated during the second quarter of 2005,” said Best.
The rating agency indicated it is “concerned that the combination of these events, in addition to negatively affecting Rosemont’s operating profit projections for 2005, will also negatively affect Rosemont’s prospective risk-based capital in light of its property catastrophe business profile.”
Best also said the “ratings will remain under review pending discussions with Rosemont’s management and re-evaluation of the capital requirements necessary to support the company’s current rating. A.M. Best expects to commence discussions with Rosemont’s management and conclude its analysis in the short term.”
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