Fitch Ratings has downgraded its insurer financial strength rating of The Underwriter Insurance Company to BBB+ from A minus.
The downgrade follows a review of the company's accounts following the departure of Keith Rutter as chief executive in March 2003. Fitch said it was concerned that the poor quality of business underwritten in previous years may require further reserve strengthening.
The ratings agency also urged the company to "fundamentally" change its underwriting philosophy.
Fitch said it is in discussions with the insurer to ascertain the level of capital increase required to regain an A minus rating.
