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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 06, 2020 02:30 PM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of IRB-Brasil Resseguros S.A. (IRB) (Brazil).
The rating actions follow the resignation of IRB’s CEO and CFO on March 4, 2020. Subsequently, IRB issued a press release stating that its Board of Directors appointed a new executive as CFO and interim CEO. Adding additional uncertainty, IRB’s Board of Directors upheld the decision by its Statutory Board to initiate an investigation to identify the exact circumstances of the disclosure of information by IRB executives regarding its shareholder base. AM Best is concerned about the effectiveness of IRB’s governance and believes the company will remain challenged while replacing two key executives.
A rating factor that could lead AM Best to remove the under review with negative implications status is the successful management transition while maintaining the company’s existing levels of risk-adjusted capitalization and operating performance as well as any potential impact on the company’s business profile.
A rating factor that could lead AM Best to remove the under review status and downgrade IRB’s ratings is a material deterioration of IRB’s risk-adjusted capitalization, operating performance, business profile, or enterprise risk management caused by any management change at the company.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.