A.M. Best Co. downgraded the financial strength rating (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
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