Scandinavian Reinsurance Co. Ltd, the Bermuda-based finite risk reinsurer, has ceased new and renewal underwriting after contributing to parent company Sirius International Insurance Corp's $138m (£97m) loss for 2001.
After the announcement ratings agencies Standard & Poor's and A.M. Best cut Scandinavian Re's ratings to BBB- and B++ respectively. They also placed Sirius' A+ ratings under review.
They cited deteriorating results and uncertainty about the ultimate parent company's (ABB Limited) long-term commitment to insurers as the reasons.
ABB Ltd, a Switzerland-based energy and manufacturing giant, is reviewing the strategic fit of all its businesses. Last week it announced a $691m (£484m) net loss for 2001.
