A.M. Best Co. downgraded the FSR of Stockton Reinsurance Limited to “BB++” from “A-” and removed the company from under review.
The rating decision reflects Stockton’s poor underwriting results in finite reinsurance and in its investments in Lloyd’s syndicates during fiscal years 2000 and 2001. A.M. Best assigned a negative outlook to the rating due to its concern over prospects for added production in Stockton’s core finite business and the potential for ongoing earnings volatility.
Somewhat offsetting the negative rating factors is Stockton’s aggressive actions to decrease costs and streamline managerial and functional operations. That was addressed through staff reductions in Bermuda and the U.K. and by implementation of a stronger management focus in the Crowe operation.
Topics Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
World’s Largest Retirement Community Set to Borrow $180 Million for More Homes 
How Federal Ban on Intoxicating Hemp Products Will Reshape Risk, Coverage 
Insurer Rolls Out Policy to Protect Data Centers Against Growing Backlash 
Chubb Q3 Net Income Down Slightly on More Catastrophe Losses From This Issue
