AM BEST REVISES GREENLIGHT RE’S OUTLOOK TO NEGATIVE

AM Best has revised the outlook for Cayman Islands-based hedge fund reinsurer Greenlight Capital Re to negative from stable, reflecting concern over the group’s business profile and its track record of negative underwriting performance. AM Best noted that Greenlight Re has a five-year average combined ratio of 105.3% and a five-year average return on equity of minus 13.3%. The ratings firm said further negative ratings actions could be in the offing if underwriting profitability does not improve. AM Best affirmed the group’s bbb- long-term issuer credit rating as well as the A- (excellent) financial strength ratings and a- issuer credit ratings of the group’s Greenlight Reinsurance (Cayman Islands) and Greenlight Reinsurance Ireland operating units.