A.M. Best Places Credit Ratings of Canopius US Insurance, Inc. Under Review With Negative Implications

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

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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
Edin Imsirovic, +1-908-439-2200, ext. 5740
Senior Financial Analyst
edin.imsirovic@ambest.com
or
Robert Raber, +1-908-439-2200, ext. 5696
Senior Financial Analyst
robert.raber@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
Edin Imsirovic, +1-908-439-2200, ext. 5740
Senior Financial Analyst
edin.imsirovic@ambest.com
or
Robert Raber, +1-908-439-2200, ext. 5696
Senior Financial Analyst
robert.raber@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