AM Best has affirmed the financial strength rating of A- (excellent) for GoshawK Reinsurance (Bermuda), and removed the rating from under review. It said the outlook was negative.
It said the decision followed detailed discussions with the GoshawK Group concerning the protection of GoshawK Re's capital from the problems generated by the group's Lloyd's operation.
AM Best said the negative outlook reflected increased uncertainty over GoshawK Re's market profile and consequently, its prospective operating performance. It said this was with particular regard to the challenge of building an attractive outgoing book and avoiding adverse selection.
The rating had been placed under review following an announcement from GoshawK Insurance Holdings that it might be in breach of its banking covenants due to the need for additional reserve strengthening at Syndicate 102.
