Best Affirms Olympus Re ‘A-’ Rating; Removes Rating from Under Review

A.M. Best Co. announced that it has affirmed the financial strength rating of “A-” (Excellent) of Bermuda-based Olympus Reinsurance Company Ltd., has removed the rating from under review and has assigned it a stable outlook.

Best has also assigned an issuer credit rating of “a-” to Olympus, also with a stable outlook.

“This rating action follows A.M. Best’s review of both Olympus’ September 30, 2004, results, including the impact of hurricane Jeanne, along with a revised and implemented plan by Olympus to maintain a stable premium volume throughout the remainder of 2004,” said the announcement. “For 2005, Olympus’ premium plan is expected to remain on par with 2004 and will be managed by Olympus through its ability to adjust property business assumptions from Folksamerica Reinsurance Company (New York, NY).”

Best said the revised premium plan meets its “expectations for supporting the company’s current financial strength rating. Once fully implemented, Olympus’ plan to maintain premium writings at the present level is expected to produce a capital base able to withstand multiple property catastrophe loss scenarios and remain well within the ‘Excellent’ range.”

The rating agency noted that it had placed Olympus’ ratings “under review with negative implications following deterioration in the company’s risk-adjusted capital position due to estimated losses incurred from hurricanes Charley, Frances and Ivan. Without management’s revised plan to manage premium production, Olympus was exposed to further negative impact from potential unknown catastrophes.”

Best said it would continue to monitor the capital strength and premium growth of Olympus.