![]() ![]() ![]() ![]() The rating agency explained, “The ratings of Clear Blue have been placed under review with negative implications given the current uncertainty around Clear Blue’s ability to rely on certain letters of credit, posted to back reinsurance placed by Clear Blue with certain reinsurers. With multiple letters of credit (LOCs) backing Vesttoo reinsurance participations in programs now thought to be fraudulent or forged, there is a risk for fronting specialists that capacity is not there to support the functioning of client programs.Ĭlear Blue and Vesttoo had entered into a partnership back in August 2022, where the insurtech had been planning to deploy much as $1 billion of capacity from the capital markets through Clear Blue’s property and casualty (P&C) programs over the next year.ĪM Best said that is has placed Clear Blue Insurance Group’s Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) under review with negative implications as of yesterday. It followed this with a specific update on Clear Blue, as the fronting company likely most exposed to the Vesttoo situation. But the fronting company said that it believes it can replace all of the Vesttoo linked reinsurance collateral and it continues to expect no negative impacts to Clear Blue or its customers.ĪM Best said yesterday that it will review the collateral arrangements of all fronting companies that it provides ratings for, in light of the claims that collateral involved in transactions facilitated by Vesttoo could be fraudulent. Fronting specialist Clear Blue Insurance Insurance Group has had its A- financial strength rating placed under review with negative implications by AM Best as the fall-out from the Vesttoo collateral issues continues. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |