Abstract: A.M. Best Co., the reputed insurance rating company assigned separate ratings to the different companies of the Quanta Group. But, almost all of these ratings, be it, Financial Strength Rating or Issuer Credit Rating, were downgraded afterwards by the A.M. Best Co.
Quanta Capital Holdings Ratings clearly suggest the financial strength of the Quanta Capital Holdings. These ratings were assigned by A.M. Best Co., the reputed insurance reputed company. A.M. Best assigned separate insurance ratings to the different companies of the Quanta Group.
The Insurance Ratings received by Quanta group of companies are the following:
The insurance subsidiaries or reinsurance subsidiaries of Quanta Capital Holdings Limited received A- in Financial Strength Rating. But, later A.M. Best Co. downgraded this rating to
B++.
These subsidiary companies of Quanta Capital Holdings Limited got “a-” in Issuer Credit Rating. Nut, this rating was also downgraded by A.M. Best Co. to the level of “bbb”.
These rating actions were also applicable for Quanta Europe Limited of Ireland, Quanta Reinsurance Limited of Bermuda and the subsidiary companies of Quanta Reinsurance Limited. It can be mentioned here, that the significant subsidiary companies Quanta Reinsurance Limited are Quanta Reinsurance U.S Limited, Quanta Specialty Lines Insurance Company and Quanta Indemnity Company.
Quanta Capital Holdings earlier received “bbb-” in its' Issuer Credit Rating. But, later A.M. Best Co. downgraded this rating to the level of “bb”.
Quanta Capital Holdings got “bb” in its' Securities Rating, but later it was downgraded to “b+”, by A.M. Best Co.
The down gradation of the insurance ratings was done by A.M. Best for the following reasons:
Quanta Group unexpectedly generated substantial loss due to hurricane Katrina and Hurricane Rita. This substantial loss fall within the range of $40 million and $45 million.
The group carries some cost structure disadvantages.
Prior Risk Management Practices require restructuring and certain key positions in the management panel are needed to be filled rightly.
But, the insurance ratings of Quanta Group, also suggests that, the companies were successful in their initiatives of capital-raising.