A.M. Best Co. has placed a Charleston-based RRG under review after contingency issues, as well as a declining surplus level for policy holders.
The ratings agency stated that it was placing under review, with negative implications, the financial strength rating of B++ (Good) and issuer credit rating of "bbb" of Healthcare Safety & Protection Risk Retention Group in Charleston, South Carolina.
It cited: “Disclosure of a significant contingency amount recorded in the third quarter of 2012….related to a dispute in reinsurance ceding commission", as well as policyholders' surplus level declining since the beginning of the year: "to levels indicating increased leverage for the company”, as reasoning for the action.
The ratings will remain under review pending further discussion between A.M. Best and the RRG's management regarding strategic options for the company going forward.
