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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 17, 2015 05:04 PM (EST)
A.M. Best has commented that the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of “a” of Ironshore Insurance Ltd. (Bermuda) and its affiliated operating companies: Ironshore Indemnity Inc. (Minneapolis, MN), Ironshore Specialty Insurance Company (Phoenix, AZ) and Ironshore Europe Limited (Ireland) (collectively referred to as Ironshore), and the ICR of “bbb” of Ironshore Inc. (Cayman Islands), are not immediately affected by the recent events surrounding its ultimate parent, Fosun International Limited (Fosun). These ratings remain under review with negative implications.
Last week, Fosun announced that its chairman, Guo Guangchang, is assisting investigations being conducted by the Chinese judicial authority. A.M. Best views this as a fluid situation and is in the process of assessing the potential impact, if any, this event may have on the ratings of Ironshore.
Ironshore’s ratings were placed under review with negative implications on July 31, 2015, pending its acquisition by Fosun, and A.M. Best maintained that under review status on Nov. 23, 2015, shortly after the close of the transaction as A.M. Best continued to analyze additional information regarding Ironshore’s capital structure.
The existing under review status on Ironshore reflects A.M. Best’s concern over the weak financial profile of Fosun, represented by its high financial leverage and constrained liquidity position. These recent events create an additional level of uncertainty as to Fosun’s continued ability to improve its financial position within a time frame originally contemplated. A.M. Best will monitor this situation and conduct further discussions with management to assess Ironshore’s governance structure and regulatory oversight, which together could insulate Ironshore’s capital from adverse financial conditions at Fosun.
A.M. Best will continue to monitor the developments at Fosun and the implications for Ironshore, as well as Fosun’s other rated insurance subsidiaries; however, the current ratings of Ironshore are unchanged.
This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.
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