A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Lancashire Insurance Company (Lancashire) under review with negative implications. Concurrently, A.M. Best has placed the ICR of “bbb-” of Lancashire Holdings Limited (both of Hamilton, Bermuda) under review with negative implications.
These rating actions follow Lancashire’s recent announcement of the unexpected departure of Vice President J. Alex Richards, who was senior retrocession underwriter. Richards’ previous expertise and expected retrocessional underwriting results for Lancashire were a major component of the business plan presented to A.M. Best at the time of the initial rating and consequently were integral in the final rating decisions.
Lancashire has replaced Richards with Deputy Chief Underwriting Officer, Simon Burton and Vice President and Retrocession Underwriter, Bryan Bumsted. With Richards’ departure, A.M. Best will proceed with a due diligence process regarding the named appointments and the effect on Lancashire’s overall business plan.
The ratings will remain under review with negative implications pending completion of this process.
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