A.M. Best Comments on Credit Ratings of Validus Reinsurance, Ltd. Following Agreement to Acquire Crop Risk Services

OLDWICK, N.J.--()--A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Validus Reinsurance, Ltd. (Validus Re) (headquartered in Hamilton, Bermuda), a subsidiary of Validus Holdings, Ltd. (Validus) [NYSE:VR], remain unchanged following the announcement by Validus of its agreement to acquire Crop Risk Services (CRS). The outlook of the FSR is stable, while the outlook of the Long-Term ICR is positive.

Validus announced its agreement to acquire CRS, a general agent specializing in primary crop insurance based in Decatur, Illinois, for $127.5 million in cash. The transaction includes a long-term marketing services agreement with the seller, Archer Daniels Midland Company. The transaction is expected to close in the second quarter of 2017.

As Validus implements its business plan, A.M. Best will monitor the extent to which the change in business mix will alter the company’s risk profile and affect its risk-adjusted returns.

This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Susan Molineux, +1-908-439-2200, ext. 5829
Senior Financial Analyst
susan.molineux@ambest.com
or
Steven Chirico, +1-908-439-2200, ext. 5087
Director
steven.chirico@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Susan Molineux, +1-908-439-2200, ext. 5829
Senior Financial Analyst
susan.molineux@ambest.com
or
Steven Chirico, +1-908-439-2200, ext. 5087
Director
steven.chirico@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com