Best Places Ironshore’s Ratings Under Review with Negative Implications

A.M. Best Co. has placed the issuer credit rating (ICR) of “bbb-” of Cayman Islands-based Ironshore Inc. and the ICR of “a-” and financial strength rating of ‘A-‘ (Excellent) of its operating subsidiaries under review with negative implications. The operating subsidiaries include Ironshore Insurance Ltd., Ironshore Reinsurance Ltd. (both of Bermuda), Ironshore Indemnity Inc. (Minneapolis, MN) and Ironshore Specialty Insurance Company (Phoenix, AZ).

Best said the “under review status reflects Ironshore’s material deviation from its original business plan and the risks in implementing key components of its new plan given current market conditions.”

The rating agency added that, while it believes the “change in business plan will ultimately enhance the Ironshore franchise, executing key components of the plan will be challenging over the short term due to market conditions.

“The negative implications imply that the current ratings could be affirmed, or should the revised business and capital plans not be executed as expected, downward pressure on the current ratings could result.”

However, Best concluded that “given the prior experience of the new management team in executing similar strategies,” it expects the ratings will be affirmed once the key components of the new business plan have been completed.

Source- A.M. Best – www.ambest.com