CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 05, 2004 12:00 AM (EDT)
A.M. Best Co. has downgraded the financial strength rating to C++ (Marginal) from B+( Very Good) of Centre Solutions (Bermuda) (Centre) (Hamilton, Bermuda) and its operating subsidiaries. Subsequently, the rating has been withdrawn and assigned an NR-4 rating (Company Request). This is in response to Centre management's request that Centre and its operating subsidiaries be removed from A.M. Best's interactive rating process.
Despite a $250 million capital contribution from its parent company, Zurich Financial Services (ZFS) earlier this year, Centre's current downgrade reflects A.M. Best's continued concern regarding exposure to adverse loss development and the capital adequacy necessary to support Centre's run-off operations. In A.M. Best's opinion, additional hard capital support from ZFS may not be relied upon to insulate Centre from future adverse development in its historical exposures.
The financial strength rating of Centre had been downgraded to B+ (Very Good) from A- (Excellent) on March 12, 2004.
The financial strength rating has been downgraded to C++ (Marginal) from B+ (Very Good) and assigned a NR-4 rating for Centre Solutions (Bermuda) and its following subsidiaries:
- Centre Insurance International Company
- Centre Reinsurance International Company
- Centre Reinsurance Limited
- Centre Solutions (US) Limited
- CentreLine Reinsurance Limited
- Centre Solutions (Asia) Limited
- Centre Insurance Company
- ZC Specialty Insurance Company
- Centre Life Insurance Company
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.