AM Best Changes Under Review With Negative Implications Status to Developing for Credit Ratings of Sirius International Insurance Group and Its Rated Subsidiaries

LONDON--(BUSINESS WIRE)--AM Best has changed the under review with negative implications status to developing for the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Sirius Bermuda Insurance Company Ltd. (Sirius Bermuda) (Bermuda), Sirius International Insurance Corporation (publ) (Sirius International) (Sweden) and its subsidiary Sirius America Insurance Company (Sirius America) (USA). Additionally, AM Best has changed the under review with negative implications status to developing for the Long-Term ICRs of “bbb-” of Sirius International Insurance Group, Ltd. (SIIG) (Bermuda) [NASDAQ: SG] and Sirius International Group, Ltd. (Bermuda), both non-operating holding companies.

The ratings reflect SIIG’s consolidated balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings of Sirius Bermuda, Sirius International and Sirius America factor in their strategic importance to SIIG.

The rating actions follow the announcement that SIIG has entered into a definitive agreement to combine with Third Point Reinsurance Ltd. in a cash and stock transaction, subject to customary closing conditions, including regulatory approval. The ratings are under review with developing implications, as AM Best needs to fully assess the financial and operational impact of the transaction on the rating fundamentals of SIIG and its rated subsidiaries. AM Best expects to resolve the under review with developing implications status after the close of the transaction, which is expected to complete during the first quarter of 2021.

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