AM Best has placed the financial strength rating of Platinum Underwriters Holdings, currently A (excellent), and issuer credit ratings (ICR) of its reinsurance subsidiaries, currently “a”, under review with negative implications.
AM Best said it has also placed the ICR of “bbb” for Platinum and all of the group's debt ratings under review with negative implications.
It said the rating actions follow Platinum's recent announcement that it has recognised $135m in post-tax losses stemming from Hurricane Wilma.
AM Best added that intercompany reinsurance arrangements designed to protect Platinum Bermuda's capital were not sufficient to address the frequency of hurricanes experienced in 2005.
