A.M. Best Co. has commented that the financial strength rating of ‘A-‘ (Excellent) and the issuer credit ratings (ICR) of “a-” of Flagstone Reassurance Suisse S.A., Cayman Islands-based , Island Heritage Insurance Company Ltd. And Cyprus-based Flagstone Alliance Insurance and Reinsurance PLC, as well as the ICR of “bbb-” of Luxembourg-based Flagstone Reinsurance Holdings S.A. (referred to as Flagstone Re) are unchanged following its recent restructuring announcement.
In addition Best said the indicative debt ratings of “bb” on preferred stock, “bb+” on subordinated debt and “bbb-” on senior debt for securities available under the shelf registration of Flagstone Reinsurance Holdings S.A. are also, unaffected by these recent developments.
The outlook for all of the ratings remains negative.
Flagstone Re announced on October 24, 2011, that it would restructure the organization in an effort to focus on its core operations. Best said that “while this is a significant shift away from the company’s previous strategy of diversification, the streamlined structure is anticipated to result in overall efficiencies throughout the organization.”
Best also indicated that the “new structure will allow the company to reduce its global risk profile and refocus on its core underwriting strategies.”
Best said it would “continue to monitor Flagstone Re as the company moves through the phases of restructuring as well as its ongoing efforts to improve on its risk-adjusted capitalization.”
Source: A.M. Best
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