Greenlight Capital Re Ltd.'s board plans to launch a strategic review after A.M. Best revised its outlook on the A- financial strength ratings of the company's subsidiaries to negative from stable.
The outlook revision was attributed to negative underwriting performance and a material decrease in surplus in recent years, according to a filing. To reduce volatility in the near term, Greenlight Capital Re has de-risked its investment portfolio and is holding a majority of its investment assets in cash and short-term treasuries until the review is complete.
