A.M. Best Co. has placed under review with developing implications the financial strength rating of ‘A-‘ (Excellent) and issuer credit ratings of “a-” of Bermuda-based IPCRe Limited and Validus Re Europe Limited, which is headquartered in Dublin, Ireland.
The under review status “reflects the recent change in IPCRe’s strategy following a loss portfolio transfer (LPT) of existing claim reserves that was completed in late December 2011,” Best explained. “The LPT is uncapped and effectively transfers all current and future claim obligations relating to IPCRe’s prior business to Validus Reinsurance, Ltd. rendering IPCRe a shell company. IPCRe is not currently writing any new business, and management is assessing alternative business strategies for the company.”
Best added that the “developing implications status relates to the need for additional information to be provided by management over the near term as to its future business plans for IPCRe. Although the company’s business profile has materially changed, a strong level of capitalization continues to support the counterparty credit exposure associated with the LPT and the current rating level.”
The under review status will remain until IPCRe solidifies its future business plans and Best has an opportunity to evaluate them.
Source: A.M. Best.
Topics Europe
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