A.M. Best Affirms Rating of Olympus Reinsurance Company Ltd; Removes Rating from under Review.
This rating action follows A.M. Best's review of both Olympus' September 30, 2004, results, including the impact of hurricane Jeanne, along with a revised and implemented plan by Olympus to maintain a stable premium volume throughout the remainder of 2004. For 2005, Olympus' premium plan is expected to remain on par with 2004 and will be managed by Olympus through its ability to adjust property business assumptions from Folksamerica Reinsurance Company (New York, NY). The revised premium plan meets A.M. Best's expectations for supporting the company's current financial strength rating. Once fully implemented, Olympus' plan to maintain premium writings at the present level is expected to produce a capital base able to withstand multiple property catastrophe loss scenarios and remain well within the "Excellent" range.
Olympus was placed under review with negative implications following deterioration in the company's risk-adjusted capital position due to estimated losses incurred from hurricanes Charley, Frances and Ivan. Without management's revised plan to manage premium production, Olympus was exposed to further negative impact from potential unknown catastrophes. A.M. Best will continue to monitor the capital strength and premium growth of Olympus.
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