Bermuda-based Catlin Group Limited said today it was surprised by A.M. Best Company's decision to place the financial strength ratings of “A,” along with the issuer credit ratings of Catlin Insurance Company Limited and other Catlin Group companies under review with negative implications.
Best in its announcement attributed the review of the international specialty property-casualty insurer and reinsurer to concerns relating to Catlin's consolidated catastrophe exposure and the likely future impact of major events on risk-adjusted capitalization.
The insurer said it believes that such concerns are unwarranted. During the past year, Catlin said it has strengthened its financial security and made the Group more resilient in the event of a major catastrophe.
Further, Catlin said its Group has reduced by one-third its exposure to natural catastrophe risk compared with a year earlier.
Catlin pointed to what it said was further diversification of its “already balanced underwriting portfolio to increase the amount of non-catastrophe related risk it writes.”
The insurer said it has increased the Group's capital by approximately $65 million through a placement of new common shares.
Catlin's reported first half 2006 underwriting performance produced net income of $147.3 million and a combined ratio of 84.7.
Stephen Catlin, chief executive of Catlin Group Limited, said, “We are puzzled by A.M. Best's decision to place the ratings of Catlin Group companies under review, especially in the light of our performance and achievements during 2006.”
He added that, “Catlin is widely regarded as having a conservative underwriting philosophy and strong focus on all aspects of risk management. We will concentrate our efforts to engage in constructive communication with A.M. Best to alleviate any concerns Best may have regarding Catlin's catastrophe exposures.”
Catlin Insurance Company Ltd (Catlin Bermuda) and Catlin Insurance Company (UK) Limited (Catlin UK) have financial strength ratings of 'A' (Excellent) and issuer credit ratings of 'a' from Best. Catlin Group Limited has a Best issuer credit rating of 'bbb.
Lloyd's Syndicate 2003 (the Catlin Syndicate) has an 'A' (Excellent) Lloyd's Syndicate Rating, which is not under review by A.M. Best, the company said.
Catlin reported it wrote $1.4 billion in gross premiums last year.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
