Press Release - JUNE 24, 2016
A.M. Best Removes From Under Review and Affirms Ratings of Ironshore Inc. and Subsidiaries; Assigns Negative Outlook
| ||Scott Mangan|
Senior Financial Analyst
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Assistant Vice President
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Manager, Public Relations
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Assistant Vice President, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 24, 2016
A.M. Best has removed from under review with negative implications and affirmed the financial strength ratings 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). Concurrently, A.M. Best has also removed from under review with negative implications and affirmed the ICR of “bbb” of Ironshore Inc. (Cayman Islands). Each of these ratings has been assigned a negative outlook.
The affirmation of the ratings reflects A.M. Best’s view that Ironshore has strong stand-alone attributes as a specialty insurer, will continue to build a relevant franchise in the specialty sector and is capable of delivering strong operating results.
The negative outlook reflects the drag related to the credit profile and high debt leverage measures of Ironshore’s ultimate parent, Fosun International Ltd (Fosun). Fosun recently applied under Practice Notice 15 for approval from The Stock Exchange of Hong Kong Limited on a proposed spin-off and separate listing of Ironshore on either the New York Stock Exchange or NASDAQ. A.M. Best believes this is part of a strategy that could sufficiently insulate Ironshore from potential issues that Fosun may encounter due to their vulnerable credit profile and aggressive acquisition activity. The IPO will enhance the previous actions Ironshore has already taken to strengthen its corporate governance structure.
Rating factors that could lead to negative rating actions include the inability of Ironshore Inc. to make steady progress towards, and successfully execute, an initial public offering within a reasonable time frame, a deterioration in Fosun’s credit profile, a decline in risk-adjusted capitalization or a sustained deterioration in operating performance.
Rating factors that could lead to positive ratings actions include sustained long term improvements in operating performance while maintaining strong levels of 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 see A.M. Best’s Recent Rating Activity web page.
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