Outlook was negative at the time of the withdrawal, agency says
AM Best has officially withdrawn the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) previously held by Carolina Re, a Bermuda-based company, coming in the wake of the company’s dissolution, with the ratings holding a negative outlook at the time of withdrawal.
The decision to withdraw these ratings follows the dissolution of Carolina Re, Ltd. In 2022, the company executed a commutation of all outstanding obligations that were ceded under intercompany quota-share reinsurance agreements.
These obligations were returned to the US-based insurance subsidiaries of James River Group Holdings as of January 1, 2022. By December 2023, Carolina Re had ceased all operations and was officially dissolved.
In line with AM Best’s standard procedures, a final rating opinion is typically issued alongside the withdrawal of ratings. However, in the case of Carolina Re, producing a final rating opinion was not feasible due to the company’s lack of an insurance license and the absence of insurance liabilities. As a result, AM Best has proceeded with the withdrawal of Carolina Re’s ratings without a concluding rating opinion.
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