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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 05, 2016 03:27 PM (EST)
A.M. Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Ironshore Insurance Ltd. (Bermuda) and its affiliated operating companies: Ironshore Indemnity Inc. (Minneapolis, MN), Ironshore Specialty Insurance Company (Scottsdale, AZ) and Ironshore Europe Designated Activity Company (Ireland) (collectively referred to as Ironshore). Concurrently, A.M. Best has placed under review with developing implications the Long-Term ICR of “bbb” of Ironshore Inc. (Cayman Islands).
The Credit Rating (rating) actions follow the announcement that Ironshore’s ultimate parent, Fosun International Limited (Fosun), and Liberty Mutual Holding Company Inc. (LMHC) have entered into a definitive agreement where LMHC will acquire 100% ownership of Ironshore Inc. and its subsidiaries for approximately 1.45 times Ironshore’s tangible book value per share, which is estimated to be approximately $3 billion.
A.M. Best views this transaction positively for Ironshore’s ratings, as it will resolve any potential concerns associated with the credit profile and financial leverage position of its current parent, Fosun. However, should the transaction not be completed as planned and Ironshore remains exposed to these financial pressures, negative rating actions could occur, depending on the exact circumstances surrounding the desolation of the pending acquisition agreement.
The transaction is expected to close in the first half of 2017, pending regulatory approvals. A.M. Best will continue to monitor the transaction for any future developments.
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.
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