Rating agency AM Best has downgraded the financial strength ratings of Gerling Global Reinsurance Corporation of America (GGRCA) and its subsidiary, Constitution Insurance Company (CIC), to B+ (very good) from A- (excellent).
The ratings remain under review with negative implications.
The agency said this rating action follows today's announcement by GGRCA's parent, Gerling Konzern Globale Ruckversicherungs, that it is to withdraw from the US non-life reinsurance market as a result of a strategic review of its U.S. operations.
A.M. Best said it remains concerned that further adverse claims development from GGRCA's portfolio could place additional strain on its weakened capitalization.
