OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has maintained the under review with negative implications status of the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of “a” of Ironshore Insurance Ltd. (Bermuda) and its affiliated operating companies: Ironshore Indemnity Inc. (Minneapolis, MN), Ironshore Specialty Insurance Company (Phoenix, AZ) and Ironshore Europe Limited (Ireland) (collectively referred to as Ironshore). Concurrently, the ICR of “bbb” of Ironshore Inc. (Cayman Islands) remains under review with negative implications.
The rating action follows an announcement that Ironshore and Fosun International Limited (Fosun) have finalized their definitive agreement for Fosun to acquire the remaining 80% interest in Ironshore, on top of the existing 20% ownership stake that Fosun already holds.
A.M. Best acknowledges that Ironshore continues to maintain solid stand-alone rating attributes and the transaction is expected to provide Ironshore with greater access to long-term committed capital and the potential for a more global distribution platform. However, the under review with negative implications status reflects A.M. Best’s concerns regarding Fosun’s credit profile and its financial leverage, which could potentially place a strain on Ironshore’s stand-alone capitalization under certain stress scenarios. The under review status will be removed once A.M. Best completes its assessment of new details relating to the capital structure between the two parties.
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