Best Affirms Lancashire Ratings; Removes from ‘Under Review’

A.M. Best Co. announced that it has affirmed the financial strength rating (FSR) of “A-” (Excellent) and the issuer credit rating (ICR) of “a-” of Lancashire Insurance Company. Concurrently, Best has affirmed the ICR of “bbb-” of Lancashire Holdings Limited (both of Hamilton, Bermuda). It has also removed all of the ratings from under review with negative implications and has assigned a stable outlook.

“These rating actions follow the completion of A.M. Best’s due diligence process regarding the unexpected departure of Vice President J. Alex Richards, Senior Retrocession Underwriter, and the appointments of Deputy Chief Underwriting Officer Simon Burton and Vice President and Retrocession Underwriter, Bryan Bumsted,” said the bulletin.

Best said it “views the addition of Mr. Burton’s expertise as being able to keep expected underwriting results and business mix in line with the Lancashire business plan presented to A.M. Best at the time the company received its initial ratings.”

The rating agency added that it “closely monitors new company formations. Any deviations in management, earnings, capitalization or risk profile from the presentations made in the business plans used by A.M. Best to issue initial ratings are analyzed for the effect these have on the company’s ability to meet financial obligations.”