COOPER GAY VOWS “CORRECTIVE ACTION” FOLLOWING DOWNGRADE

London-based Cooper Gay Swett & Crawford (CGSC) has said it will take “corrective action” to address the operational issues that sparked a downgrade of its financial strength rating on Friday. Standard & Poor’s lowered the reinsurer’s rating by one notch from B to B- in reaction to the group’s full year results for 2013 and first half results for 2014. The rating agency said organic growth rates had deteriorated in the first six months of this year based on tough conditions in the London market and increased competition in Latin America. However, S&P said it does not expect further damage to profitability and has revised its outlook on the company from negative to stable. Revenue from acquisitions, including Newman Martin & Buchan L.L.P and Epsilon Insurance Broking Pty Ltd, is expected to mitigate the decline in organic growth in future and S&P expects full-year revenue growth of between 8% and 12%. Toby Esser, CEO of CGSC, said its 2013 results had been “a catalyst for positive change” and that it will plough ahead with efforts already in place to reduce costs and make the business more efficient.