A.M. Best Assigns Ratings to Peleus Re and Its Affiliates.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" to Peleus Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Ltd. (Peleus Re). Concurrently, A.M. Best has assigned FSRs of B+ (Good) and ICRs of "bbb-" to Peleus Re's sister companies, PXRE Reinsurance Company (Hartford, CT) and PXRE Reinsurance Limited. A.M. Best has also assigned an ICR of "bb+" to the holding company, PXRE Group Ltd. (PXRE) [NYSE NYSE See: New York Stock Exchange : PXT PXT Pocket Excel Template ]. All companies are domiciled in Bermuda, unless otherwise specified. In addition, A.M. Best has assigned a debt rating of "bb-" to PXRE Capital Trust I's outstanding trust preferred securities. Concurrently, A.M. Best has assigned ratings of "bb+" to senior debt, "bb" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "bb-"on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of PXRE's $700 million universal shelf registration. A.M. Best has also assigned a rating of "bb-" on the trust preferred securities of the same $700 million universal shelf registration to PXRE Capital Trust IV. The outlook for all ratings is stable. (See below for a detailed listing of the ratings.) The assigned ratings reflect Peleus Re's solid capitalization, prudent business plan, as well as its extensive experience and proven track record of senior management. The ratings also reflect the announced merger of PXRE and Argonaut Group, Incorporated (Argonaut) [NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AGII], which is expected to close by the end of third quarter 2007, subject to shareholder and regulatory approvals. Upon completion of the merger, PXRE will be renamed Argo Group International Holdings Limited (Argo Group), headquartered in Hamilton, Bermuda. Peleus Re is led by Barbara Bufkin, president. Until recently, Ms. Bufkin was senior vice president of Corporate Business Development of Argonaut. A.M. Best expects that Ms. Bufkin and Peleus Re's management team will maintain strong underwriting, risk management and pricing controls to ensure a favorable underwriting experience. Peleus Re is being capitalized with $240 million through a contribution from its parent company, PXRE, an investment from an affiliate, PXRE Reinsurance Limited and a future investment from Argonaut. Peleus Re plans to provide quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). reinsurance coverage for Argonaut, as well as property catastrophe, pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. and risk excess reinsurance coverage worldwide. In addition to being susceptible to high severity events, A.M. Best anticipates that Peleus Re will be challenged by increased competition from both established companies and start-ups seeking to gain market share. Furthermore, the ability of Peleus Re to effectively build and retain market acceptance must be proven over time. Accordingly, A.M. Best will closely monitor the quarterly performance of Peleus Re against its stated business plan, and any material negative deviation in terms of earnings, capitalization, or risk profile could result in downward pressure on the assigned ratings. The FSR of A- (Excellent) and ICR of "a-" have been assigned to Peleus Reinsurance Ltd. The FSRs of B+ (Good) and ICRs of "bbb-" have been assigned to PXRE Reinsurance Company and PXRE Reinsurance Limited. The ICR of "bb+" has been assigned to PXRE Group Ltd. The following debt rating has been assigned: PXRE Capital Trust I-- --"bb-" on $100 million 8.85% trust preferred securities, due 2027 The following indicative debt ratings for securities available under the $700 million universal shelf registration have been assigned: PXRE Group Ltd.-- --"bb+" on senior debt --"bb" on subordinated debt --"bb-" on preferred stock PXRE Capital Trust IV-- --"bb-" on trust preferred securities For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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