OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-”of United Insurance Company (UIC) (Cayman Islands) and its subsidiary, United Re (Europe) S.A. (Luxembourg). UIC has entered into a definitive agreement to acquire and assign to a commonly owned entity, the acquisition target, in a transaction that has not been announced publically, and is subject to regulatory approval.
The under review status with negative implications reflects AM Best’s concerns that the transaction has put pressure on UIC’s capital strength and liquidity position. UIC’s ratings will remain under review with negative implications until the transaction closes, and AM Best is able to adequately analyze the effects of the transaction on UIC’s ratings. AM Best will continue to monitor any interim developments and reassess the group’s capital and liquidity position on Sept. 30, 2019, in conjunction with the expected recapitalization of the group.
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