Business & Finance
Business and Finance
Business and Finance
Mon, October 24, 2011 A.M. Best Comments on Restructuring Announcement of Flagstone Reassurance Suisse S.A.
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and the issuer credit ratings (ICR) of aa-a of Flagstone Reassurance Suisse S.A. (Martigny, Switzerland), Island Heritage Insurance Company Ltd. (Cayman Islands) and Flagstone Alliance Insurance and Reinsurance PLC (Limassol, Cyprus) as well as the ICR of abbb-a of Flagstone Reinsurance Holdings S.A. (Luxembourg) (NYSE: FSR) (referred to as Flagstone Re) are unchanged following its recent restructuring announcement.
"Risk Management and the Rating Process for Insurance Companies"
Also, unaffected by these recent developments are the indicative debt ratings of abba on preferred stock, abb+a on subordinated debt and abbb-a on senior debt for securities available under the shelf registration of Flagstone Reinsurance Holdings S.A. The outlook for all ratings remains negative.
On October 24, 2011, Flagstone Re announced that it would restructure the organization in an effort to focus on its core operations. While this is a significant shift away from the companyas previous strategy of diversification, the streamlined structure is anticipated to result in overall efficiencies throughout the organization. Additionally, the new structure will allow the company to reduce its global risk profile and refocus on its core underwriting strategies. A.M. Best will continue to monitor Flagstone Re as the company moves through the phases of restructuring as well as its ongoing efforts to improve on its risk-adjusted capitalization.
The principal methodology used in determining these ratings is [ Bestas Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Bestas rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aRisk Management and the Rating Process for Insurance Companiesa; aNatural Catastrophe Stress Testa; aUnderstanding Universal BCARa; aRating Members of Insurance Groupsa; and aA.M. Bestas Ratings & the Treatment of Debt.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].
Copyright 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
