Best Downgrades, then Withdraws Olympus Re Ratings

A.M. Best Co. announced that it has downgraded the financial strength rating (FSR) to “B”- (Fair) from “B+” (Very Good) and the issuer credit rating to “bb-” from “bbb-” of Bermuda-based Olympus Reinsurance Company Ltd. It also has removed both ratings from under review, and assigned a negative outlook.

“Subsequently, the ratings will be withdrawn and a rating of NR-4 (Company Request) will be assigned in response to management’s request that Olympus be removed from A.M. Best’s interactive rating process,” said the announcement.

Best noted: “The downgrades follow significant deterioration in the company’s risk-adjusted capitalization as a result of the 2005 catastrophe losses. While Olympus has recently raised $156 million to continue writing business on a limited basis, management has decided to do so without a published FSR.”