A.M. Best Comments on Ratings of Sompo Japan Insurance Inc. Following Its
HONG KONG -- December 20, 2013
A.M. Best Asia-Pacific Limited has commented that the financial strength
rating of A+ (Superior) and issuer credit rating of “aa-” of Sompo Japan
Insurance Inc. (Sompo Japan) are unchanged following the announcement that
Sompo Japan plans to acquire Canopius Group Limited (Canopius) (UK).
On December 18, 2013, NKSJ Holdings, Inc (NKSJ) (Japan) announced that Sompo
Japan, its main operating subsidiary, will acquire Canopius. The all-cash
transaction, worth GBP 594 million (approximately JPY 100 billion), will
result in Canopius becoming a wholly owned subsidiary of Sompo Japan while
continuing to operate as a specialty insurer by retaining its own brand name
and management team. The transaction is expected to close in the second
quarter of 2014, subject to the relevant regulatory approvals.
Sompo Japan is a wholly owned subsidiary of NKSJ, one of the major non-life
insurance holding companies in Japan. NKSJ Holdings was established as a joint
holding company following the merger of Sompo Japan and NIPPONKOA Insurance
Co., Ltd. in 2010.
Canopius was established in 2003 in Guernsey and currently has the
10^th-largest market share in the Lloyd’s market. With a well-diversified
portfolio globally, Canopius is expected to enhance NKSJ’s overseas
businesses, particularly through the development of specialty insurance
A.M. Best does not anticipate that Sompo Japan will see a significant change
in its risk-adjusted capitalization or operating performance in the near to
midterm as a result of the acquisition.
The methodology used in determining these interactive ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M. Best’s
rating process and contains the different rating criteria employed in the
rating process. Best’s Credit Rating Methodology can be found at
Ratings are communicated to rated entities prior to publication, and unless
stated otherwise, the ratings were not amended subsequent to that
A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. 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.
Seewon Oh, +852-2827-3404
Senior Financial Analyst
Moungmo Lee, +852-2827-3404
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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