A.M. Best Downgrades Rating of Omega Insurance Company; Remains Under Review With Negative Implications.OLDWICK, N.J. -- A.M. Best Co. has downgraded the 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. ) to B++ (Very Good) from A- (Excellent) of Omega Insurance Company (Gainesville, FL). The rating remains under review with negative implications. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. is attributable to the deterioration of risk-adjusted capitalization, primarily as a result of the estimated losses associated with Hurricane Wilma Hurricane Wilma was the most intense hurricane ever recorded in the Atlantic basin. Exceeding the 21 storms of the 1933 season, Wilma was the twenty-second storm (including the subtropical storm discovered in reanalysis), thirteenth hurricane, sixth major hurricane, and fourth . The rating was previously placed under review with negative implications on November 7, 2005, pending A.M. Best's review of Omega's various capital enhancement initiatives. While management's capital replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. plan will result in improved risk-adjusted capitalization, it is no longer supportive of the former rating. The rating will remain under review pending execution of additional capital enhancement as well as A.M. Best's continued review of Omega's strategic plans. In the event the proposed recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plan is not fully implemented in the near term, the rating will likely be further downgraded. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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