The insurer financial strength ratings on the core operating units of HIH Insurance Ltd. (HIH) were lowered from “BBB-” to “B” by Standard & Poor’s. HIH is comprised of the following companies: HIH Casualty and General Ins. Ltd.; CIC Insurance Ltd. (including New Zealand branch); FAI General Ins. Co. Ltd.; HIH Insurance (Asia) Ltd.; and HIH WorkAble Ltd. Concurrently, the counterparty credit ratings on these entities were changed from “BBB-” to “B.” S&P had previously lowered the ratings on HIH in November 2000 and again in February 2001, placing them on CreditWatch negative.
The most recent rating action withdrew the ratings from CreditWatch, which was done at the request of HIH management. S&P said that it expects HIH to report a significant loss and that the negative outlook is a reflection of significant uncertainty regarding HIH’s capacity to meet obligations due to recent adverse business conditions.
The “A-” ratings assigned to HIH’s New Zealand operations are unchanged. Those companies are HIH Casualty and General Insurance (N.Z.) Ltd.
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