Best puts Validus units under review – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password

Best puts Validus units under review

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.

You must be Registered or to post comment or to vote.

Published February 17, 2012 at 1:00 am (Updated February 17, 2012 at 5:55 am)

Best puts Validus units under review

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon