Insight and Intelligence on (Re)insurance Convergence with the Capital Markets

19 May 2012

AM Best downgrades Montana Re 2009 on RMS model change

14 July 2011

Ratings agency AM Best has downgraded $175mn of Flagstone Re's Montana Re 2009 US wind and quake cat bond, in light of higher attachment probabilities under RMS's new Version 11.0 US hurricane model.

In a note explaining the move, AM Best said it took the action because the bonds had been modelled with an earlier RMS model and that it had now received the updated probability of attachment based on the latest version.

The new results showed a "significant increase&...

You are currently viewing an incomplete version of this article. If you are a subscriber then please login now. If you are a non-subscriber but would like to be able to view this article, then please select from the purchasing options below.

Purchase


Share: This article was published as part of issue June 2011/1

Insider Publishing Limited - 2nd Floor Asia House, 31-33 Lime Street, London, EC3M 7HT, United Kingdom. The content of this website is copyright of Insider Publishing Limited 2012. All rights reserved Insider Publishing Limited actively monitors usage of our website and products and reserves the right to terminate accounts if abuse occurs.

Π