Ratings check as chief of Underwriter quits

AM Best and Fitch are reviewing their ratings of The Underwriter Insurance Company following the resignation of the company's founding chief executive, Keith Rutter last Friday.

AM Best has placed its A- rating under review with negative implications, while Fitch has placed its A- rating on rating watch negative.

The resignation of Rutter shocked many in the market.

Geoff Crisp, of Fusion Insurance Services, said: "I was very surprised that Keith stepped down, he started the company.

"I know he was frustrated by the lack of extra capital from the backers [Morgan Stanley].

"He felt the market conditions are as good as they'll ever get and he wasn't getting the extra capital from the backers.

The Underwriter stopped writing new business in June 2002 due to hard market rates. It is understood that Rutter asked backer Morgan Stanley for more capital, but none was forthcoming.

While The Underwriter is open for new business, market analysts predict that it could be caught short again by mid-year.

A company spokesman said: "Keith's departure was highly amicable, it was via mutual agreement and he will be retaining his shareholding in the company."

Rutter will be replaced as chief executive by Nigel Rogers, who was president and chief executive of Markel subsidiary Terra Nova.

Rogers left Markel in June 2000. He subsequently sued Markel for £2.8m. Rogers had been considering a senior position with a new Bermudian reinsurer.