AM Best has affirmed the insurer financial strength rating of XL Capital at...
AM Best has affirmed the insurer financial strength rating of XL Capital at A+.
AM Best stated that the rating action was influenced by the Bermuda-based insurer's move to raise $3.2bn in capital earlier this month and XL taking the appropriate measures to reduce its exposure to catastrophic loss.
XL recorded losses of $1.05bn in the third quarter largely due to hurricane activity.
The company has discontinued some of its catastrophe insurance programmes and entered a quota share property reinsurance arrangement with newly formed Bermuda reinsurer Cyrus Reinsurance.
Late last month, Standard & Poor's downgraded XL to A+ from AA-, following an arbitration loss to Winterthur Swiss Insurance in a dispute over a 2001 transaction between the two companies.
