Moody’s has placed Monticello Insurance under review with a view to downgrading its “Ba1” insurance financial strength rating.
Monticello is the captive reinsurance subsidiary of Vale, a Brazilian mining company, which was tipped for a downgrade itself on 22 January.
The captive is closely integrated with Vale and the group’s global risk management function, as it’s the sole insurance captive utilised in Vale’s property insurance and business interruption programme worldwide, according to the ratings agency.
Moody’s added that Monticello’s rating is further constrained by its product risk concentration and significant risk exposures, as well as the weak sovereign credit profile and operating environment of Barbados, where the captive is domiciled.
