AM Best Places Credit Ratings of Fidelis Insurance Holdings Limited and Its Subsidiaries Under Review with Negative Implications

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 (Long-Term ICR) of “a” (Excellent) of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda), Fidelis Underwriting Limited (United Kingdom) and Fidelis Insurance Ireland Designated Activity Company (Ireland). In addition, AM Best has placed under review with negative implications the Long-Term ICR of “bbb” (Good) of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company. Concurrently, AM Best has placed under review with negative implications the Long-Term Issue Credit Rating of “bb+” (Fair) of Fidelis Insurance Holdings Limited’s $304 million ($58 million currently outstanding) 9% preference shares due 2050.

Fidelis announced on July 25, 2022, its intention to create Fidelis MGU, a new managing general underwriter, which upon regulatory approval will be separated from the existing Fidelis companies. The new entity will be led by most of the current management of Fidelis. In turn, Fidelis will be led by a combination of existing Fidelis executives supplemented by a number of experienced senior executives from outside the organization.

As a result of the risk of implementation of the new structure, AM Best is of the opinion that Fidelis’ business profile may be affected by the separation of key management personnel into a separate legal entity. As a result the ratings of Fidelis Insurance Holdings Limited and the members of this rating unit have been placed under review with negative implications. AM Best will continue to monitor the separation, implementation and execution of the new strategy and structure. The under review status is expected to be resolved when the separation is fully executed, which includes appropriate regulatory approvals, and AM Best can assess, among other items, the market acceptance of the new structure, which will be apparent by analyzing business volumes and quality.

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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