A.M. Best Co. has affirmed the financial strength rating of ‘A’ (Excellent) and issuer credit ratings (ICR) of “a” of Bermuda-based Wind River Reinsurance Company, Ltd. and its U.S. subsidiaries. Best also affirmed the ICR of “bbb” of the ultimate parent holding company of Wind River Re, Global Indemnity plc, which is based in Dublin, Ireland.
The outlook for all of the ratings is stable.
Best concurrently withdrew the ICR of “bbb” and debt ratings of the intermediate parent holding company, United America Indemnity, Ltd. (UAI), which is based in the Cayman Islands, due to the transfer of its universal shelf registration to Global Indemnity.
As a result Best said it “has assigned indicative ratings of “bbb” on senior unsecured debt, “bbb-” on subordinated unsecured debt and “bb+” on preferred stock to Global Indemnity’s shelf registration. The outlook for these ratings is stable. These indicative ratings and outlook are consistent with the previous ratings of the UAI shelf registration.”
These ratings take into account “Global Indemnity’s solid capitalization, strong historical operating performance and its diversified portfolio of specialty products provided on both an admitted and non-admitted basis by Wind River Re and its U.S. subsidiaries,” Best explained.
“The U.S. subsidiaries operate under a single pooling agreement, whereby they pool their premiums and liabilities and cede 50 percent of their combined net retained liabilities to Wind River Re. Wind River Re also continues to maintain a book of unaffiliated, third-party reinsurance to complement the affiliated business.”
As partial offsetting factors Best cited “the recent deterioration in the company’s combined ratio due to severe weather losses in both its insurance and reinsurance operations. In addition, losses in the professional and general liability lines have adversely impacted operating results.”Best added that it “does not believe that recent results are indicative of a trend, it will continue to monitor the results of Global Indemnity.”
In addition Best noted that the company’s ability to successfully execute on the business plans implemented by its newly appointed CEO, Cynthia Valko is of “special importance.” She has an extensive insurance background and became CEO of Global Indemnity on September 19, 2011.
“Factors that may lead to a positive rating action include a sustained improvement in operating performance and the company’s ability to meet or best projections.
“Factors that may lead to a negative rating action include a decline in risk-adjusted capitalization, a continuation of weak operating performance or deterioration in Global Indemnity’s reserves.”
Best summarized the companies affected by its rating actions as follows:
The FSR of ‘A’ (Excellent) and ICRs of “a” have been affirmed for Wind River Reinsurance Company, Ltd. and its following subsidiaries:
Diamond State Insurance Company
Penn-America Insurance Company
Penn-Patriot Insurance Company
Penn-Star Insurance Company
United National Casualty Insurance Company
United National Insurance Company
United National Specialty Insurance Company
Source: A.M. Best
Topics Trends Carriers USA Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
FBI Says Chinese Hackers Preparing to Attack US Infrastructure 
Former Congressman Charged After Collision with State Trooper in Florida 
4,800 Claims Handled by Unlicensed Adjusters in Florida After Irma, Lawsuit Says 
California Sees Two More Property Insurers Withdraw From Market 
