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” (Excellent) of Wentworth Insurance Company Limited.
The Credit Ratings have been placed under review with negative implications due to volatility in Wentworth’s risk-adjusted capitalization position, says Best, driven mainly by investment market fluctuations.
Best notes, “Despite the support provided by the ultimate parent, Fairfax Financial Holdings Limited, the company’s stand-alone balance sheet strength has become stressed.”
The ratings agency suggests that Wentworth is evaluating solutions to bring the risk-adjusted capitalization back to prior levels and reduce the ongoing volatility.
Wentworth’s ratings will remain under review until a concrete action plan is provided by management and AM Best evaluates its impact on the company’s current and projected risk-adjusted capitalization.
