LONDON--(BUSINESS WIRE)--A.M. Best has placed under review with developing implications the issuer credit rating (ICR) of “a-” of Amlin plc (Amlin) (United Kingdom), the financial strength rating (FSR) of A (Excellent) and the ICR “a+” of Amlin AG (Switzerland), the FSR of A+ (Superior) and the ICR of “aa-” of Lloyd’s Syndicate 2001 (United Kingdom), and the issue rating of “bbb+” on GBP 230 million 6.5% fixed-to-floating rate subordinated notes maturing 18 December 2026 issued by Amlin.
The rating actions follow Amlin’s announcement on 8 September 2015 that it has entered into an agreement to be acquired by Mitsui Sumitomo Insurance Company Limited (MSI) for approximately GBP 3.5 billion. Under the terms of the agreement, each Amlin ordinary share would be exchanged for 670 pence (GBP). The ratings have been placed under review because A.M. Best needs to evaluate MSI’s plans for Amlin and its subsidiaries, and the impact of the transaction on the risk-adjusted capitalisation of the Amlin entities.
A.M Best expects to resolve the under review status of the ratings upon completion of the transaction. The transaction is subject to the approval of Amlin’s shareholders and regulatory approval, and is expected to close in the first quarter of 2016.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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