A.M. Best Downgrades and Removes Ratings From Under Review of Converium Insurance and Converium Holdings Both of -North America- Inc.
The rating downgrades are based on Converium management's plan to cease underwriting at CINA. Converium has indicated that CINA operations will be dormant for the foreseeable future, with no immediate plans of business activity. Earlier, Converium announced that additional capital would not be contributed to CINA as was originally planned. The additional capital injection was intended to support previously planned ongoing U.S. business written through CINA. However, Converium's current plan is to write all future ongoing U.S. business through Converium and its Bermuda branch.
The downgrading of CHNA's debt rating is based on Converium's decision to make CINA's operations dormant and place CRNA's operations into runoff. These actions leave CHNA without an actively operating subsidiary to support required interest payments. A.M. Best anticipates that Converium will continue to service CHNA's debt. A.M. Best's financial strength rating for Converium is B++ (Very Good).
The negative outlook reflects A.M. Best's opinion that Converium's North American franchise has been dramatically weakened and any possible future efforts to re-establish a viable business plan for the U.S. subsidiaries will deplete capital and operational focus from the European parent.
For current Best's ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc.
For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/.
For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/.
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 http://www.ambest.com.
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|Date:||Sep 29, 2004|
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