The A- financial strength ratings of IPCRe and Validus Re Europe have been placed under review with developing implications by AM Best.The ratings agency says that IPC, which was acquired by Validus in 2009, has stopped writing new business and is effectively a shell company.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.“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,” Best said in a statement. “Although the company’s business profile has materially changed, a strong level of capitalisation 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 AM Best.