Best Lowers Realm Rating to C++

A.M. Best Co. has downgraded the financial strength rating to C++ (Marginal) from B+ (Very Good) of Realm National Insurance Company, New York, and has assigned it a negative outlook. The rating action reflects Realm's exposure to a high level of reinsurance recoverables and additional deterioration in operating performance and capitalization through 2001. The significant reinsurance recoverables affect not only capitalization but also raise concerns about operating cash flow. Additionally, A.M. Best has concerns regarding tightened financial flexibility at Realm's ultimate parent company, S...