6 December 2013Analysis

RRG ratings withdrawn following downgrade

AM Best has withdrawn the ratings of risk retention group National Contractors Insurance Company following a downgrade for their financial strength and issuer credit ratings. The rating actions reflect the results of a single claim falling outside of NCIC’s reinsurance policy.

The effect of such a large single claim on NCIC’s capitalisation reflects the vulnerability of the company’s overall financial position, AM Best wrote. NCIC's ratings outlook was negative despite the company's expectation of the claim being decided in their favour.