AM Best has downgraded the financial strength rating to B (fair) from B+ (very good) of The Underwriter, following the company's announcement that the operation is to be placed in run-off.
AM Best has also changed this rating to NR-3 (rating procedure inapplicable) to highlight the fact that the insurer is in run-off.
In May the ratings agency downgraded this rating to B+ and maintained the negative outlook, highlighting concerns about The Underwriter's loss reserves being in need of significant strengthening.
At the time, AM Best predicated the maintenance of the B+ rating on the successful implementation of the company's revised business strategy and projected restructure of the portfolio's risk profile.
