A.M. Best Withdraws Ratings of Glacier Reinsurance AG

LONDON--(BUSINESS WIRE)-- A.M. Best Europe – Rating Services Limited has downgraded the issuer credit rating (ICR) to “bbb” from “bbb+” and affirmed the financial strength rating (FSR) of B++ (Good) of Glacier Reinsurance AG (Glacier Re) (Switzerland). These ratings have been removed from under review with negative implications and assigned a negative outlook. Concurrently, A.M. Best has withdrawn the ratings at the company’s request and assigned an NR-4 (Company Request) to the FSR and an “nr” to the ICR.

These actions follow the announcement by Glacier Re that it has been acquired (subject to regulatory approval) by Catalina Bidco Limited (Catalina) and the subsequent decision of the company’s management to withdraw from A.M. Best’s interactive rating process.

The downgrade of the ICR reflects Glacier Re’s weak expected underwriting performance in 2010, with the financial impact of catastrophe losses early in the year exacerbated by the company’s decision to place the company in run off in August 2010. Nevertheless, Glacier Re’s ratings continue to reflect its adequate risk-adjusted capitalisation supported by a significant decline in its underwriting exposure.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Property/Casualty Insurers”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company.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.

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A.M. Best Company
Sam Dobbyn, +(44) 20 7397 0264
Senior Financial Analyst
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or
Miles Trotter, +(44) 20 7397 0274
General Manager
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Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
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or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company