CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - JULY 27, 2015 11:43 AM (EDT)
A.M. Best has placed under review with negative implications the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of "a" of Sirius International Insurance Corporation (publ) (Sirius) (Sweden) and its subsidiary, Sirius America Insurance Company (New York, NY). A.M. Best also has placed under review with negative implications the ICR of "bbb" of Sirius International Group, Ltd. (Sirius Group) (Bermuda). Concurrently, A.M. Best has placed the issue ratings of Sirius Group under review with negative implications. (See below for a detailed listing of all issue ratings.)
The rating action follows the recent announcement that Sirius Group's parent, White Mountains Insurance Group, Ltd. (WTM), has entered into a definitive agreement with China Minsheng Investment Corp., Ltd. (CMI), under which CMI will acquire 100% of the common shares of Sirius Group in an all cash transaction.
The under review status reflects uncertainties over CMI's financial strength and its long-term plans for Sirius Group, particularly regarding future underwriting risk appetite and investment strategy. The ratings will remain under review pending the conclusion of A.M. Best's assessment of CMI and its intention for Sirius Group.
The current rating of Sirius Group reflects its solid risk-adjusted capitalization, which is supported by its safety reserve of SEK 10.5 billion at year-end 2014 and strong operating profitability. Sirius' business profile is well-diversified geographically and by line of business, and its earnings have been resilient despite the challenging conditions in the global reinsurance market.
The following issue ratings have been placed under review with negative implications:
Sirius International Group, Ltd.—
— "bbb" on USD 400 million 6.375% senior unsecured notes, due in 2017
— "bb+" on the USD 250 million non-cumulative perpetual preference shares
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
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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