A.M. Best Co. announced that it has placed the financial strength rating of “A-” (Excellent) of Bermuda-based Olympus Reinsurance Company Ltd. under review with negative implications.
Best said it had taken the rating action “based on a projected deterioration in the company’s risk-adjusted capital position due to estimated losses incurred from Hurricanes Charley, Frances and Ivan.
“The combined net impact of these three events is expected to be in the $80 to $90 million range for Olympus. While Olympus’ risk-adjusted capitalization remains within the ‘Excellent’ range following these recent events, its projected level of capital is only marginally supportive of its current rating. As a result, A.M. Best believes there is a reasonable possibility that the company could be further negatively impacted by a future natural catastrophe.”
Best said the rating would “remain under review until the end of this year’s hurricane season when Olympus’ capital position will be reassessed. In the interim, should significant losses emanating from future hurricanes be incurred by Olympus, it will most likely result in a rating downgrade.”