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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 06, 2017 12:31 PM (EDT)
A.M. Best has removed from under review with negative implications and downgraded the Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Rating to “bb-” from “bb” of Sorford Surety Insurance Co. Ltd. (Sorford) (Hamilton, Bermuda). The outlook assigned to these Credit Ratings (ratings) is negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The rating actions reflect Sorford’s risk-adjusted capitalization, which is relatively adequate for its rating level; however, the rating downgrades reflect concerns associated with the company’s lack of sustainable business volume since its inception in 2010 and the related deterioration of capital and surplus due to administrative expenses. The negative rating outlooks reflect the uncertainty of the company’s fundamental business strategies, ongoing concern about implementation and execution risk, as well as management’s lack of communication and silence relating to the interactive rating process.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.