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FOR IMMEDIATE RELEASE
LONDON - MAY 19, 2017 11:37 AM (EDT)
A.M. Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Sompo Japan Canopius Reinsurance AG (Switzerland).
The Credit Rating (rating) action follows the successful completion of SOMPO Holdings, Inc. acquisition of Endurance Specialty Holdings Ltd. on 28 March 2017, for a total consideration of USD 6.3 billion. In particular, the rating action reflects uncertainties over Sompo Japan Canopius Reinsurance AG’s future business profile and its strategic importance within the Sompo group.
Sompo Japan Canopius Reinsurance AG was incorporated in Switzerland on 23 November 2015, following the redomiciliation of Canopius Reinsurance Limited from Bermuda. The company underwrites third-party reinsurance business through a network of branches in Switzerland, Bermuda, and prospectively, the United States and Singapore. Property and casualty reinsurance is expected to contribute the majority of Sompo Japan Canopius Reinsurance AG’s reported gross revenues in 2016.
A.M. Best will continue to monitor the impact of the transaction on Sompo Japan Canopius Reinsurance AG’s business profile and its strategic role within the Sompo group, and expects to resolve the under review status when additional details on the company’s future business plans become available.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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