A.M. Best said it has placed under review with negative implications the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of “a-” of ACP Re Ltd., based in Hamilton, Bermuda and 10 of its reinsured U.S. insurance company subsidiaries.
A.M. Best said the action is due to a delay by U.S. insurance company subsidiaries in submitting statutory financial statements for the fourth quarter of 2015.
The subsidiaries cited by A.M. Best include Castlepoint, Hermitage, Massachusetts Homeland, North East, Tower and York Insurance.
Attempts to obtain replies from several of the insurers were unsuccessful.
A.M. Best said the under-review status reflects its analysts’ concerns with the future business plans of the companies in light of the late filing of the financial statements. The ratings agency said the under-review status will remain in place until the filings have been submitted and its analysts have had opportunity to assess them.
ACP Re acquired Tower Group, which at the time was under investigation by the Securities and Exchange Commission, in September, 2014. ACP Re immediately sold off Tower’s personal lines business to National General.
In summary, the FSR of A- (Excellent) and the ICRs of “a-” have been placed under review with negative implications for ACP Re Ltd. and its following reinsured subsidiaries:
- CastlePoint Florida Insurance Co.
- CastlePoint Insurance Co.
- CastlePoint National Insurance Co.
- Hermitage Insurance Co.
- Massachusetts Homeland Insurance Co.
- North East Insurance Co.
- Preserver Insurance Co.
- Tower Insurance Company of New York
- Tower National Insurance Co.
- York Insurance Company of Maine
Source: A.M. Best