Outlook was detrimental on the time of the withdrawal, company says
AM Finest has formally withdrawn the Monetary Power Score of A- (Glorious) and the Lengthy-Time period Issuer Credit score Score of “a-” (Glorious) beforehand held by Carolina Re, a Bermuda-based firm, coming within the wake of the corporate’s dissolution, with the rankings holding a detrimental outlook on the time of withdrawal.
The choice to withdraw these rankings follows the dissolution of Carolina Re, Ltd. In 2022, the corporate executed a commutation of all excellent obligations that had been ceded underneath intercompany quota-share reinsurance agreements.
These obligations had been returned to the US-based insurance coverage subsidiaries of James River Group Holdings as of January 1, 2022. By December 2023, Carolina Re had ceased all operations and was formally dissolved.
Consistent with AM Finest’s commonplace procedures, a last ranking opinion is often issued alongside the withdrawal of rankings. Nevertheless, within the case of Carolina Re, producing a last ranking opinion was not possible because of the firm’s lack of an insurance coverage license and the absence of insurance coverage liabilities. Because of this, AM Finest has proceeded with the withdrawal of Carolina Re’s rankings and not using a concluding ranking opinion.
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