On Monday, A.M. Best Co. announced that it downgraded the financial strength rating (FSR) of American Safety Risk Retention Group, Inc. to B++ (Good) from A (Excellent).
Best noted that American Safety RRG is currently operating as a standalone entity as a result of the completion of the acquisition of its former publicly traded ultimate parent, American Safety Insurance Holdings, Ltd. by Fairfax Financial Holdings, Ltd.
Best also downgraded the issuer credit rating (ICR) for the RRG to “bbb+” from “a,” removing both the FSR and ICR from under review with negative implications and assigning a stable outlook.
Best said the ratings reflect the benefits to American Safety RRG’s executed loss portfolio transfer and casualty excess of loss reinsurance contracts.
The ratings for American Safety RRG are based on A.M. Best’s expectation that management will run the company in accordance with business plans shared with and evaluated by A.M. Best.
Source: A.M. Best