AM Best withdraws ratings for Carolina Re
AM Best has withdrawn the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Carolina Re Ltd.
At the time of the withdrawal, the agency said, the outlook of the credit ratings was negative.
AM Best said the withdrawal of the ratings assigned previously to Carolina Re Ltd reflects the dissolution of the company.
During 2022, the agency added, Carolina Re commuted the outstanding obligations ceded under the inter-company quota-share reinsurance agreements back to Bermudian-based James River Group Holdings Ltd’s US-based insurance subsidiaries effective January 1, 2022.
Carolina Re concluded all operations and was dissolved last month.
AM Best said it has withdrawn these ratings as Carolina Re Ltd no longer exists.
The agency added: “AM Best’s procedure is for a final rating opinion to be produced in conjunction with a rating withdrawal. However, a final rating opinion could not be produced for Carolina Re Ltd due to the absence of an insurance licence and insurance liabilities.”
The Bermuda Monetary Authority cancelled the registration of Carolina Re, a Class 3A insurer, effective November 16, 2022, at the request of the insurer.
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