With the announcement of Mr. Richards' exit, Lancashire said that Simon Burton, formerly an underwriter with ACE Financial Solutions, would join the company as deputy chief underwriting officer on April 10, subject to approval from the Bermuda Department of Immigration. Prior to his position at ACE, Mr. Burton worked as a consulting actuary at Tillinghast in London and Bermuda.

In mid-February, Lancashire also announced Bryan Bumsted, a former property treaty underwriter for Everest Reinsurance Company, would join Lancashire as vice president and retrocession underwriter.

Oldwick, N.J.-based A.M. Best said it will proceed with a due diligence process regarding the named appointments and the effect on Lancashire's overall business plan. The ratings will remain under review with negative implications pending completion of this process, Best said.

In a separate announcement reacting to the Best action, Lancashire Chief Executive Richard Brindle said: “We are confident that this is a temporary situation and that A.M. Best will be fully satisfied…Based on the tremendous skills and experience brought by our new appointments, we believe that the strength of our underwriting team in Bermuda will be significantly enhanced.”

“We do not expect the A.M. Best review to materially impact our ability to write new business,” he continued in the statement.

A few days after announcing Mr. Bumsted's appointment in mid-February, Lancashire released a statement with its positive initial assessment of market conditions following the January renewal season.

“We are binding business at rates and terms better than anticipated,” Mr. Brindle said then, adding that gross premiums written (and expected) through March 1 would total roughly $165 million.