OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of B (Fair) and issuer credit rating of “bb+” of ICON Reinsurance Ltd (ICON) (Cayman Islands). Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The negative outlook is based on A.M. Best’s concerns regarding ICON’s coal reserve holdings and the effect on its risk-adjusted capitalization and cash flows. The rating affirmations reflect ICON’s experienced management team and the steady growth of retained earnings.
For current Best’s Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Alternative Risk Transfer (ART)”; “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; and “Evaluating Country Risk.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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Source: A.M. Best Co.