Best Sees No Change for Converium AG Ratings

A.M. Best Co. has commented that all the ratings of Swiss-based Converium AG remain unchanged following the publication of the company’s first quarter 2005 results (See IJ Web site May 9).

“The reported net loss for the quarter of $61.8 million is somewhat higher than A.M. Best anticipated as a result of a $40 million net loss relating to the commutation of retrocessional contracts,” said the announcement.

It also noted that Converium “has continued to suffer reserve deterioration for prior year losses ($10.4 million), mainly in respect of its casualty business written in the United States, but within the level anticipated by A.M. Best. The company will continue to be closely monitored.”