Maiden rating downgraded on declining balance sheet strength
Rating agency AM Best has downgraded Maiden’s rating outlook due to “a decline in balance sheet strength and the potential that continuation of recent underwriting and operating trends could lead to negative action on the rating”.
Maiden’s balance sheet strength deteriorated in 2017 as a result of a decline in surplus driven by poor results in Maiden’s AmTrust Reinsurance business segment. This business, which historically performed at a favourable combined ratio, was impacted by adverse development of prior years’ loss reserves during 2017.
Overall loss reserve development for Maiden had been adverse in 2016 as a result of deterioration in its Diversified Reinsurance business segment, driven mostly by the commercial auto line.
AM Best has, therefore, downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb-” from “bbb” of Maiden Holdings and its downstream, intermediate holding company, Maiden Holdings North America, as well as all associated Long-Term Issue Credit Ratings (Long-Term IRs).
Join us at Intelligent Automation in Insurance - London 2018. Spring Special: Book before the March 31st and save £200.
More of today's news
AXA acquires XL Group in $15.3bn deal
Asta sells Munich Re-backed MGA Pelican
Nippon Life acquires MassMutual's Japanese unit for $935m
ArgoGlobal swoops for QBE exec to lead Singapore business
Aviva partners with insurtech Snapsheet in Canada
More articles
Intelligent Insurer
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom