A.M. Best Co. commented that the financial strength rating of “A-” (Excellent) of the Bermuda-based Alea Group and its rated subsidiaries remains unaffected following the Group’s statement that it has lowered its forecast earnings for the full year 2004.
“The announcement that consolidated year-end 2004 results will be affected by adverse reserve development is likely to result in performance below expectations,” said Best.
However the rating agency added that in its opinion “this factor is offset by additional capital raised in December 2004 of $120 million in the form of trust preferred securities.”
Standard & Poor’s made a similar announcement yesterday (See IJ Website Jan. 20).
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