A.M. Best has revised the outlook of Golden Insurance Company, a risk retention group, from stable to negative.
The revised outlook reflects the risk retention groups “declining” risk-adjusted capital position and enterprise risk management concerns, according to A.M. Best.
A.M. Best suggested that mitigating factors included Golden’s profitable earnings in recent years and the addition of a more reputable captive manager.
In June this year, Golden Insurance agreed a contract with Strategic Risk Solutions (SRS) to take on the role of the company’s captive manager.
The ratings agency explained that SRS’s experience in financial reporting and enterprise risk management will be “highly valuable” to Golden Insurance going forward.
