Best Puts CastlePoint on Review/Negative

A.M. Best Co. has placed the financial strength rating (FSR) of “A-” (Excellent) and issuer credit ratings (ICR) of “a-” of New York-based CastlePoint Insurance Company (CPIC) and Bermuda’s CastlePoint Reinsurance Company, Limited (CPRe) under review with negative implications. Best also placed the ICR of “bbb-” of Bermuda-based CastlePoint Holdings, LTD (CastlePoint) under review with negative implications.

“These rating actions follow CastlePoint’s announcement that CPIC and CPRe will engage in risk sharing agreements with AequiCap Insurance Company and AequiCap Program Administrators, where AequiCap Program Administrators will produce workers’ compensation and commercial auto-trucking business,” Best explained.

The rating agency said it hopes to “resolve the under review status of each company following a revised analysis of CastlePoint’s risk profile and appetite for specialty program business.”