A.M. Best Places Ratings of IPCRe Limited, Validus Re Europe Limited Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with developing implications the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of IPCRe Limited(IPCRe) (Bermuda) and Validus Re Europe Limited(Dublin, Ireland).

The under review status reflects the recent change in IPCRe’s strategy following a loss portfolio transfer (LPT) of existing claim reserves that was completed in late December 2011. The LPT is uncapped and effectively transfers all current and future claim obligations relating to IPCRe’s prior business to Validus Reinsurance, Ltd. rendering IPCRe a shell company. IPCRe is not currently writing any new business, and management is assessing alternative business strategies for the company.

The developing implications status relates to the need for additional information to be provided by management over the near term as to its future business plans for IPCRe. Although the company’s business profile has materially changed, a strong level of capitalization continues to support the counterparty credit exposure associated with the LPT and the current rating level. The under review status will remain until IPCRe solidifies its future business plans and those plans are evaluated by A.M. Best.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR’”; “Catastrophe Analysis in A.M. Best Ratings”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology 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 © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Gale Guerra, 908-439-2200, ext. 5069
Senior Financial Analyst
[email protected]
or
Robert DeRose, 908-439-2200, ext. 5453
Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.