A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) of Omega Insurance Company (Gainesville, Florida) under review with negative implications.
The under review status reflects the deterioration of risk-adjusted capitalization, primarily as a result of the estimated losses associated with Hurricane Wilma. Despite capital contributions prior to the 2005 hurricane season as well as the implementation of a more comprehensive reinsurance program, the risk-adjusted capital position is no longer supportive of the current rating. A.M. Best anticipates submission of Omega’s various capital enhancement initiatives in the near term.
The rating will remain under review pending A.M. Best’s evaluation of these alternatives. In the absence of the implementation of a timely and achievable capital replenishment plan and corresponding improved risk-adjusted capitalization, the rating will likely be downgraded.
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