CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - MARCH 14, 2018 01:56 PM (EDT)
A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Canopius Reinsurance AG (Canopius Re - previously known as Sompo Japan Canopius Reinsurance AG) (Switzerland), as well as the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) remain under review with negative implications following completion of their parent company’s acquisition by a private equity consortium led by Centerbridge Partners L.P.
The Credit Ratings (ratings) were placed under review with negative implications in September 2017 following the announcement that ownership of Canopius AG would change from SOMPO Holdings Inc., whose main operating subsidiary — Sompo Japan Nipponkoa Insurance Inc. (SJNKI) — currently has a Long-Term ICR of “aa-”, to the private equity consortium. It was subsequently announced on 9 March 2018 that the acquisition had been completed. Canopius Re and Canopius US had previously benefited from explicit financial support from SJNKI. SJNKI will continue to guarantee the payment of claims on policies assumed by Canopius Re prior to 1 January 2018.
A.M. Best continues to discuss with management their evolving business plans and the subsequent implications on the financial strength of Canopius Re and Canopius US. A.M. Best expects to resolve the under review status on the ratings in the coming weeks.
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