OLDWICK, N.J.--(BUSINESS WIRE)--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.
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