A.M. Best Co. lost no time in placing the financial strength and debt ratings of the operating subsidiaries of Bermuda’s RenaissanceRe Holdings Ltd. under review with negative implications. These include Renaissance Reinsurance Ltd., Glencoe Insurance Ltd., Lantana Insurance Ltd., Stonington Insurance Company and Stonington Lloyds.
The “Wells Notice” from the staff of the Securities and Exchange Commission triggered Best’s action (See IJ Website Sept. 28). The notice indicates that the staff of the SEC intends to bring a civil enforcement action against RenRe alleging violations of federal securities laws. Best also noted that James Stanard, RenRe’s CEO, received a “Wells Notice” from the SEC in July.
Best said it “continues to monitor the situation and expects that the ratings will remain under review pending a resolution of this matter, following its evaluation of any financial or management impact.”
Best also noted that “DaVinci Reinsurance Ltd. (Bermuda), who is partially owned by RenaissanceRe and whose financial results are consolidated into RenaissanceRe, will also remain under review with negative implications pending the resolution of the ‘Wells Notice’ to RenaissanceRe. DaVinci is currently under review with negative implications as A.M. Best’s evaluates its risk-adjusted capital position following Hurricane Katrina. A.M. Bests expects that any capital issues for DaVinci will be resolved in the short term.”
For a complete listing of RenaissanceRe Holdings Ltd.’s financial strength, issuer credit and debt ratings, please visit http://www.ambest.com/press/092801renre.pdf.
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