Last checked at 7 Sep 2011 07:00
7 September 2011
Omega Insurance Holdings Limited
A.M. Best Affirms Ratings of Lloyd's Syndicate 958
Ratings of Omega Companies Remain Under Review with Negative Implications
Omega Insurance Holdings Limited ("Omega", or "the Group") is pleased to announce that A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of "a+" of Lloyd's Syndicate 958, which is managed by Omega Underwriting Agents Limited, a subsidiary of the Group. The outlook for both ratings remains stable.
The Group also notes the announcement by A.M. Best that the FSR of A- (Excellent) and ICR of "a-", pertaining to Omega Specialty Insurance Company Limited (OSIL) and Omega US Insurance, Inc (OUS), together with the ICR of "bbb" of Omega Insurance Holdings Limited are unaffected and remain under review with negative implications.
Richard Pexton, CEO of Omega, made the following comments about A.M. Best's announcement:
"We are extremely pleased to receive this rating affirmation for Lloyd's Syndicate 958 from A.M. Best, which demonstrates the underlying financial health of the Syndicate. We welcome A.M. Best's comments concerning the business profile and financial strength of the Syndicate, and in addition the positive action taken by management with regard to the Group's risk management processes, reinsurance placements, and reducing the Group's exposure to catastrophe events."
A.M. Best made the following comments about Omega:
"Omega's management team has taken positive action to alleviate A.M. Best's concerns regarding the group's risk management processes and the ongoing placement of the 2011 reinsurance programme and has reduced the group's exposure to catastrophe events. However, uncertainty remains in respect of the continuing review by the group's directors of approaches that may lead to an offer to acquire Omega. A.M. Best will continue to closely monitor developments relating to the group's ownership."
"Syndicate 958 has a good business profile within the London market as a specialist underwriter of short-tail, small to medium-sized property risks, predominantly located in the United States (more than half of gross written premiums in 2010 were derived from U.S. business). In addition, the syndicate benefits from its presence in the European market through Omega Europe GmbH, a wholly owned subsidiary of Omega that operates solely as a coverholder to the syndicate."
"The ratings of Lloyd's Syndicate 958 reflect the financial strength of the Lloyd's of London (Lloyd's) market, which underpins the security of all Lloyd's syndicates. In addition, syndicate 958 benefits from the financial flexibility provided by Omega. Omega Dedicated Limited, Omega's corporate member at Lloyd's, provides 40.5% of the capacity of syndicate 958 for its 2011 year of account and OSIL underwrites a 20% quota share of the syndicate."
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Enquiries:
Omega Insurance Holdings Limited
David Coles 020 7767 3051
Haggie Financial
David Haggie/Juliet Tilley 020 7417 8989