Rating agency AM Best has placed the financial strength and debt ratings of the Trenwick Group under review with negative implications.
Despite steps taken earlier in the year to reduce its financial leverage, AM Best is concerned with Trenwick's ability to generate capital internally from earnings while servicing its financial debt obligations.
This action follows Trenwick's second quarter earnings release, which included significant growth in new business and a substantial elevation of the group's operating leverage.
The rating will remain under review as AM Best works closely with Trenwick to evaluate its capital management plan for each of its operating companies and the group's prospective earnings capacity.
