On the heels of Meadowbrook Insurance Group's announcement that it was adding $31 million to its reserves, rating agency A.M. Best Co. says it has placed the insurer under review with negative implications.
Meadowbrook currently has an A.M. Best financial strength rating of "A-minus," but the agency says there is a "reasonable likelihood that the ratings (the financial strangth and issuer credit ratings) will be downgraded" based on the specialty program manager's admission of more losses for prior years 2011, 2010 and 2009, as well as "earnings prospects going forward."
In a statement, Meadowbrook CEO Robert S. Cubbin says the company is "in the process of evaluating various reinsurance alternatives and other strategies" to better meet the rating agency's capital adequacy guidelines.
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