Bermuda insurance group Overseas Partners Ltd. - which earlier this year announced it was going in to run-off - has had its financial strength rating downgraded to B++ (Very Good) from A (Excellent) by rating agency AM Best.

AM Best also announced that it had removed the company from its under review status.

This rating was said to apply to the following subsidiaries: Overseas Partners Re Limited (OP Re), Bermuda, Overseas Partners US Reinsurance Company (OPUS), Delaware and Overseas Partners Assurance Ltd. (OPAL), Bermuda.

In February, AM Best placed the rating under review with negative implications as a result of OPL's announcement that it would begin an orderly run off of most of OPL's operations with the objective of preserving the value of shareholder investments while supporting liquidity requirements.

Since that announcement, the company has retained key senior management positions and has implemented a conservative strategy with regards to supporting its policyholders obligations.

Additionally, OPL has sold off its property catastrophe reinsurer, Overseas Partners Cat Limited, to Renaissance Re and has made significant progress in liquidating some of its real estate holdings.

Furthermore, management continues to work towards effecting the sale of OPUS and is currently working with an interested party to agree to final terms and conditions. The rating reflects AM Best's view that the overall capitalisation of the group with $1.3 billion of shareholders equity is adequate to support the run off of its liabilities, which include $1.7 billion of carried loss reserves.

AM Best also indicated that OPL's run off plans indicate that it will withdraw capital prudently and maintain shareholders equity at a level that meets or exceeds its carried loss reserve position.

In conclusion, AM Best said it would continue to monitor the adequacy of OPL's loss reserves and capitalisation.