Posted on 04 Mar 2010
A.M. Best Co. has withdrawn the financial strength rating (FSR) of 'A' (Excellent) and the issuer credit rating (ICR) of "a" of Dallas-based XL Lloyds Insurance Company, and has assigned an NR-5 to the FSR (Not Formally Followed) and an "nr" to the ICR. These rating actions "follow the recent decision by the ultimate parent, XL Capital Ltd. to dissolve XL Lloyds and transfer all assets and liabilities to its affiliated company, XL Specialty Insurance Company," Best explained. XL Lloyds was established in 2004 to write commercial property catastrophe business in Texas. While in operation, XL Lloyds did not retain any business as all premiums and losses were ceded to XL Specialty under a whole account quota share agreement.