OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “aa-” (Superior) of Catlin Specialty Insurance Company (Catlin) (Wilmington, DE). In addition, AM Best has placed these Credit Ratings (ratings) under review with negative implications.
The rating actions follow the announcement that the Catlin is to be acquired by North American Casualty Group (NAC). Catlin is to be sold as a shell, while being licensed to write excess and surplus business in all states except Oklahoma. This transaction is anticipated to close in second-quarter 2022, pending regulatory approval, at which time AM Best expects that Catlin will be added to NAC’s existing pooling agreement.
NAC’s FSR of A (Excellent) and Long-Term ICRs of “a” (Excellent) are currently have a negative outlook. Prior to the announced sale, Catlin’s ratings benefited from implicit and explicit support from its parent organization, AXA S.A. The ratings downgrades reflect the removal of this benefit.
The negative implications reflect that NAC’s ratings are currently on negative outlook, as previously referenced. Catlin’s ratings will remain under review pending the completion of the acquisition and AM Best’s assessment of post-acquisition rating fundamentals.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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