A.M. Best Places Ratings of Canopius US Insurance, Inc. Under Review Business Wire 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 www.ambest.com/ratings/methodology. 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. Contact: A.M. Best Co. Kenneth Monahan, (908) 439-2200, ext. 5342 Financial Analyst firstname.lastname@example.org or Rachelle Morrow, (908) 439-2200, ext. 5378 Senior Manager, Public Relations email@example.com or Joseph Roethel, (908) 439-2200, ext. 5630 Assistant Vice President firstname.lastname@example.org or Jim Peavy, (908) 439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Places Ratings of Canopius US Insurance, Inc. Under Review
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