A.M. Best Removes From Under Review and Affirms Ratings of PXRE.OLDWICK, N.J. -- A.M. Best Co. has removed from under review and affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (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-" for the 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. subsidiaries of the PXRE Group Ltd. (PXRE) (NYSE NYSE See: New York Stock Exchange : PXT PXT Pocket Excel Template ) (Bermuda). The rating actions apply to PXRE Reinsurance Ltd. (Bermuda) and PXRE Reinsurance Company (Hartford, CT). A.M. Best has also removed from under review and affirmed the issuer credit rating of "bbb-" and all existing debt ratings of PXRE. In addition, A.M. Best has assigned indicative debt ratings of "bbb-" to senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. , "bb+" to 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" to 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. that can be issued under PXRE's recently filed $700 million universal shelf registration. All ratings have been assigned a negative outlook. The affirmations follow A.M. Best's review of PXRE's capitalization action plan after incurring losses from hurricanes Katrina, Rita and Wilma. This action plan includes both a reduction in the company's risk profile and addition to capital. As part of this plan, PXRE issued risk linked securities providing coverage for a significant catastrophic event and a potential second catastrophic event. The combination of these actions has stabilized PXRE's current ratings. The ratings have been assigned a negative outlook until these new strategies and risk mitigation procedures have been fully tested. Going forward, A.M. Best will closely monitor the effectiveness of the new strategies and procedures with each catastrophic event. The following debt rating has been removed from under review and affirmed with a negative outlook: PXRE Capital Trust I-- --"bb" on $100 million 8.85% trust preferred securities, due 2027 The following indicative debt ratings for securities available under shelf registration have been assigned with a negative outlook: PXRE Group Ltd.-- --"bbb-" on senior unsecured --"bb+"on subordinated --"bb" on preferred stock PXRE Capital Trust IV-- --"bb" on trust preferred securities For Best's Debt Ratings, all other 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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