London-based Goshawk Insurance Holding Plc. issued a brief statement concerning A.M. Best’s recent downgrade of its ratings on Goshawk’s Bermuda-based subsidiary, Rosemont Reinsurance Ltd. (See IJ Website Oct. 19).
Best downgraded the financial strength rating to “B” (Fair) from “A-” (Excellent) and the issuer credit rating to “bb” from “a-” and assigned them a negative outlook. It was also said that Rosemont Re would likely go into run-off.
Goshawk noted that Best had previously announced on Sept. 9 that it was reviewing the financial strength of Rosemont Re.
After noting Best’s rating action, Goshawk said: “This will severely impair Rosemont Re’s ability to write existing or new business and makes the prospect of run-off more likely.”
The bulletin also noted: “The Board continues to believe that in the last two years, the risk portfolio, underwriting team and technical ability it has developed, has value. It will continue to seek ways to maximise this value for shareholders. A further announcement will be made when appropriate.”
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