A.M. Best Places Ratings of Canopius US Insurance, Inc. Under Review
OLDWICK, N.J. -- December 20, 2013
A.M. Best Co. has placed under review with developing implications the
financial strength rating of A- (Excellent) and issuer credit rating of “a-”
of Canopius US Insurance, Inc. (Canopius US) (Delaware).
The under review status follows the recent announcement that Bregal Capital
has entered into a definitive agreement to sell its 95% majority stake and all
remaining shares of Canopius Group Limited (Canopius) (Guernsey) to Sompo
Japan Insurance Inc. (Sompo Japan), a subsidiary of NKSJ Holdings Inc. Under
the terms of the agreement, Sompo Japan has agreed to pay $965 million. The
transaction is expected to close in the second quarter of 2014.
The under review status and developing implications reflect the uncertainty as
to the final rating outcome based on further clarity and details around
Canopius US, its defined role within the Sompo Japan Group, any synergies to
be garnered and the implicit and explicit support to be provided by its new
parent and member affiliates. Further details regarding management, new
business initiatives, governance, reinsurance and other forms of capital
support including capital management plans are also key factors that can
influence these ratings positively and/or negatively.
The ratings will remain under review while A.M. Best continues its discussions
with new ownership and existing management regarding these key operational and
strategic issues, as well as capitalization and earnings expectations. This
transaction is subject to customary regulatory approvals.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and highlights the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
A.M. Best Company is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Kenneth Monahan, (908) 439-2200, ext. 5342
Rachelle Morrow, (908) 439-2200, ext. 5378
Senior Manager, Public Relations
Joseph Roethel, (908) 439-2200, ext. 5630
Assistant Vice President
Jim Peavy, (908) 439-2200, ext. 5644
Assistant Vice President, Public Relations
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