Alea Group has announced it has been notified that AM Best is placing its financial strength rating of A- (excellent) and its issuer credit rating of a- under review with negative implications.
Alea is currently in discussions with AM Best, which has indicated that it will require the company to significantly increase its capital to maintain its rating, it said.
Alea chief executive Mark Ricciardelli commented: "We are disappointed with AM Best's decision
"Nonetheless, Alea is considering the most appropriate and expedient method for addressing AM Best's concerns and to maintaining its ratings."
Alea also announced it received a subpoena from the Securities and Exchange Commission for documents relating to certain non-traditional, or loss mitigation, insurance products.
Alea said it intended to fully cooperate in responding.
