A.M. Best puts SAC Re on review with negative implications
BOSTON, July 30
BOSTON, July 30 (Reuters) - Insurance rating group A.M. said on Tuesday that it is placing SAC Re, the reinsurance arm linked to hedge fund SAC Capital Advisors, on review with negative implications less than a week after the fund was hit with criminal insider trading charges.
"Presently, there is uncertainty as to whether the invested assets can be managed by SAC Capital as well as whether there will be ramifications concerning any affiliation with SAC Capital on the reinsurance franchise going forward," the company said in a statement.
A year ago, when SAC became the latest hedge fund to get into the reinsurance business, A.M. Best awarded a rating of A- (Excellent) and issuer credit rating of "a-".
At the time SAC said that it would be investing the reinsurer's assets.
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