A.M. Best Co. said it downgraded the financial strength rating of PXRE Group to "B" (fair) from "B-plus" (very good) today, before withdrawing the ratings at the request of PXRE management.
Late yesterday, the reinsurer announced separately that it had requested that all the major credit rating agencies withdraw their financial strength and claims paying ratings of the company and its operating subsidiaries.
In mid-February, PXRE, anticipating ratings downgrades pushing it out of the A-range, announced that it intended to explore strategic alternatives for the company.
A.M. Best delivered the first downgrade announcement at the time, cutting the rating to "B-double-plus" (very good) from "A-minus" (excellent).
In a statement yesterday, Jeffrey Radke, PXRE's president and chief executive, said, "In the period since the downgrades, we have found that operational ratings below the critical 'A' category provide little value for a reinsurer."
PXRE, with operations in Bermuda, Europe and the United States, provides reinsurance products and services to a worldwide marketplace. The company's primary focus is providing property catastrophe reinsurance and retrocessional coverage. The company also provides marine, aviation and aerospace products and services.
Prior to the downgrades by Oldwick, N.J.-based A.M. Best and other rating agencies in February, PXRE stock traded at a price close to $12 per share. Yesterday's close was $3.36 per share.
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