OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE).
The rating action follows the announcement on Sept. 1, 2017, by Sompo Canopius AG, an intermediate parent company of Canopius US, that it will be acquired by a private equity consortium led by Centerbridge Partners LP.
Historically, Canopius US’ ratings have received rating enhancement due to the company’s strategic importance to its current ultimate parent, Sompo Japan Nipponkoa Insurance Inc. (SJNKI). A.M. Best anticipates that SJNKI will provide explicit and implicit support to Canopius US until the closing of the announced sale of Sompo Canopius AG.
The ratings have been placed under review with negative implications as A.M. Best assesses the change in ownership. The current rating for Canopius US encompasses operational and financial support, along with strategic benefits the company received as being part of SJNKI. With the announcement, there is concern regarding how this support will be replicated or produced upon the completion of the sale.
The ratings will remain under review as A.M. Best continues dialogue with management of Canopius US and has the opportunity to complete an assessment of the financial strength of Sompo Canopius AG.
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