Last checked at 29 Mar 2011 16:42
Press Release
29 March 2011
Omega Insurance Holdings Limited
A.M. Best Places Ratings of Omega Companies Under Review with Negative Implications;
Ratings of Lloyd's Syndicate 958 Remain Unchanged
Omega Insurance Holdings Limited (Omega, or the Group) notes the announcements by A.M. Best to put under review the ratings of Omega Specialty Insurance Company Limited (OSIL) and Omega US, Inc. (OUS), following announcement of the 2010 results. In its announcement, A.M. Best have stated that the losses incurred for 2010 were larger than expected and that, as a result, the Group's consolidated risk-adjusted capitalisation was lower than that previously expected by A.M. Best, although it remained excellent at year-end 2010.
The Group continues to derisk the business and protect shareholders' equity. In conjunction with this strategy, as previously disclosed in our preliminary results, we are changing the composition of some of our reinsurances to better reflect the Group's risk appetite. Further, it is utilising the risk modelling tools that have been put in place across the Group during the last twelve months to assist in making these changes, and this information will continue to be made available to A.M. Best in support of their review following the unprecedented level of industry wide losses in the first quarter of 2011. Omega will continue to work closely with A.M. Best to provide all relevant information to facilitate the review and to resolve their outstanding issues.
The Board notes that A.M. Best has maintained the financial strength rating of A (Excellent) and issuer credit rating (ICR) of "a+" of Lloyd's Syndicate 958. The Group's economic interest in Syndicate 958 represents approximately 70% of its consolidated gross premiums written, and the Syndicate is well positioned to take advantage of any upward change in the worldwide insurance market conditions. OUS continues to build its franchise writing US domestic SME business in line with recent statements to shareholders.
As noted by A.M. Best and, as previously announced, Omega has received approaches that may lead to an offer, and the Directors will review these approaches in the context of the best interests of the business, shareholders and staff.
ENDS
Further information
David Haggie / Juliet Tilley
Haggie Financial
Tel +44 (0)20 7417 8989