A.M. Best Co. has issued a statement indicating that the ratings of Bermuda-based Catlin Group Limited, Catlin Insurance Company Limited and Catlin Insurance Company (UK) Ltd. will “remain under review with negative implications following Catlin’s announcement that its offer for Wellington Underwriting plc has been declared unconditional” (See IJ web site Dec.19).
Best added that it “had anticipated resolving the under review status of these ratings prior to closure of the Wellington acquisition. However, it has not yet been possible to obtain combined data relating to both Catlin and Wellington, and this has prevented completion of A.M. Best’s review of the likely impact of future major events on Catlin’s consolidated risk-adjusted capitalization.”
The rating agency now anticipates completing the review in the first quarter of 2007. It review will include an assessment of the possible benefit of enhanced diversification resulting from the acquisition.
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