A.M. Best Comments on Ratings of Sompo Japan Insurance Inc. Following Its Announced Acquisition Business Wire 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 business. 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 www.ambest.com/ratings/methodology. Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication. 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. Contact: A.M. Best Seewon Oh, +852-2827-3404 Senior Financial Analyst firstname.lastname@example.org or Moungmo Lee, +852-2827-3404 General Manager email@example.com or Rachelle Morrow, +(1) 908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, +(1) 908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Comments on Ratings of Sompo Japan Insurance Inc. Following Its Announced Acquisition
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