Press Release - MARCH 06, 2018
A.M. Best Places Credit Ratings of XL Seguros Mexico, S.A. de C.V. Under Review With Developing Implications
FOR IMMEDIATE RELEASE
MEXICO CITY - MARCH 06, 2018
The Credit Rating (rating) actions taken on the Mexican subsidiary follow the announcement of an agreement to purchase XL Group Ltd (XL) [NYSE: XL] by AXA Group on March 5, 2018, for $57.60 per share, for a total consideration value of $15.3 billion. The transaction represents a 33% premium to XL closing share price on March 2, 2018. This transaction is expected to close in the second half of 2018 and is expected to be financed as an all cash deal. The ratings will remain under review until the deal closes, and A.M. Best completes its evaluation of organizational changes and XL’s strategic position within the new structure. A positive rating outcome could occur depending on the levels of implicit and explicit support provided to XL and its subsidiaries after the close of the transaction. However, if the transaction is unsuccessful there could be negative rating pressure on XL if operational issues emerge. The under review status may be updated in the interim period if new facts and circumstances present themselves.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.
This press release relates to rating(s) that have been published on A.M. Best’s website. For additional 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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