A.M. Best has placed the financial strength rating of A- and issuer credit rating of "a-" of Bermuda-based 2005 start-up Lancashire Insurance Company under review with negative implications following the departure of a key executive. The ICR of "bbb-" of Lancashire Holdings Limited is also under review with negative implications.

Best attributed the rating actions to the unexpected departure of vice-president Alex Richards, a senior retrocession underwriter.

"Mr. Richards' previous expertise and expected retrocessional underwriting results for Lancashire were a major component of the business plan presented to A.M. Best at the time of the initial rating and consequently were integral in the final rating decisions," Best said.

Mr. Richards, who helped chief former Lloyd's underwriter Richard Brindle start-up Lancashire last year, has been replaced by Deputy Chief Underwriting Officer, Simon Burton, and Vice President and Retrocession Underwriter, Bryan Bumsted.

Best will proceed with a due diligence process regarding the named appointments and the effect on Lancashire's overall business plan.

The ratings will remain under review with negative implications pending completion of this process.