Best Indicates 2008 Loss Won’t Affect Catlin Group’s Ratings

A.M. Best Co. has commented that the ratings of the Bermuda-based Catlin Group and its subsidiaries remain unchanged following the publication of the group’s full year 2008 results.

Best said it “believes that Catlin’s consolidated risk-adjusted capitalization will remain strong, despite a significant reduction in shareholders’ equity at year-end 2008 largely driven by currency translation losses.

“Capitalization in 2009 will be supported by Catlin’s decision to proceed with a fully underwritten rights issue, subject to shareholders approval.”

Best added that Catlin’s overall loss before tax of nearly $13 million falls within its expectations, “taking into account the impact of catastrophes on underwriting experience and poor trading conditions in investment markets.”

Source: A.M. Best – www.ambest.com