CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - AUGUST 19, 2016 12:18 PM (EDT)
A.M. Best has placed under review with negative implications the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Unity Reinsurance Company Ltd (Unity Re) (Russia).
The rating action follows the recent announcement that the board of directors of SPAO RESO Garantia (RESO Garantia) agreed on 28 July 2016 to acquire Unity Re for RUB 1.6 billion (approximately USD 25 million).
RESO Garantia is currently Unity Re’s sister insurance company and forms a part of the RESO Group, which comprises insurance, motor, banking and leasing businesses in Russia and its neighbouring countries.
The under review with negative implications status reflects A.M. Best’s concern that RESO Garantia’s ownership could place a strain on the rating fundamentals of Unity Re, as well as uncertainty regarding Unity Re’s business strategy following the acquisition.
During the under review period, A.M. Best will collect additional information on RESO Garantia in order to conduct a comprehensive analysis of RESO Garantia’s financial strength.
The ratings will remain under review until the transaction has closed and A.M. Best has completed its assessment of the impact of the acquisition on Unity Re’s rating fundamentals.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.