A.M. Best Places Ratings of RenaissanceRe Under Review With Negative Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength and debt ratings of the operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of RenaissanceRe Holdings Ltd. (RenaissanceRe) (Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the ) under review with negative implications. The operating subsidiaries include Renaissance 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., Glencoe Insurance Ltd., Lantana lantana (lăntā`nə): see verbena. lantana Any of more than 150 shrubs that make up the genus Lantana in the verbena family, native to the New World and African tropics. Insurance Ltd., Stonington Insurance Company and Stonington Lloyds. This rating action follows an announcement by RenaissanceRe that it has received a "Wells Notice A Wells Notice is a letter that the U.S. Securities and Exchange Commission sends to people or firms when it is planning to bring an enforcement action against them. The Wells Notice indicates that the SEC staff has determined it may bring a civil action against the target. " from the staff of the Securities and Exchange Commission. This indicates that the staff of the SEC intends to bring a civil enforcement action against RenaissanceRe alleging violations of federal securities laws. The group's chief executive officer, James Stanard, received a "Wells Notice" from the SEC in July. A.M. Best continues to monitor the situation and expects that the ratings will remain under review pending a resolution of this matter and A.M. Best's evaluation of any financial or management impact that it might have on the RenaissanceRe. DaVinci Reinsurance Ltd. (Bermuda), who is partially owned by RenaissanceRe and whose financial results are consolidated into RenaissanceRe, will also remain under review with negative implications pending the resolution of the "Wells Notice" to RenaissanceRe. DaVinci is currently under review with negative implications as A.M. Best's evaluates its risk-adjusted capital position following Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . A.M. Bests expects that any capital issues for DaVinci will be resolved in the short term. For a complete listing of RenaissanceRe Holdings Ltd.'s financial strength, issuer credit and debt ratings, please visit http://www.ambest.com/press/092801renre.pdf. 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. 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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