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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 26, 2015 09:40 AM (EDT)
A.M. Best has placed under review with negative implications the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Maiden Specialty Insurance Company (MSIC) (Raleigh, NC).
The rating action follows the recent announcement that MSIC's parent, Maiden Holdings, Ltd. (Maiden Holdings) [NASDAQ: MHLD], has entered into a definitive agreement with Clear Blue Financial Holdings, LLC(Clear Blue) , under which Clear Blue will acquire MSIC, which is being sold as an inactive shell. Upon closing, MSIC will reinsure all liabilities to its immediate parent, Maiden Reinsurance North America, Inc. (Maiden Re NA). All remaining ratings of Maiden Holdings and its subsidiaries are unchanged. (Please see A.M. Best's press release dated May 29, 2015.)
The current rating of MSIC reflects its solid risk-adjusted capitalization and the explicit support provided by Maiden Re NA via an intercompany reinsurance support. Partially offsetting these positive rating factors is MSIC's limited business profile as a run-off company due to a 100% quota share reinsurance arrangement of MSIC's excess and surplus unit including the transfer of staff and underwriting platform to Brit Insurance in the second quarter of 2013.
The ratings will remain under review pending regulatory approval and the conclusion of A.M. Best's discussions with Clear Blue's management team regarding its plans for MCIS's future operations, business strategy and its risk-adjusted capitalization.
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.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.