AM Best has placed the financial strength rating (FSR) of A (Excellent) of Bermuda-based insurer, Endurance Specialty Insurance (Endurance) and its rated affiliates under review with positive implications following its recent agreement with Sompo Japan.
The credit rating actions follow Sompo Japan Nipponkoa Insurance’s recent acquisition of Endurance. Under the terms of transaction, Sompo will pay approximately $6.3 billion to acquire 100 percent of the outstanding shares of Endurance, which translates to $93 per share.
According to AM Best the ‘under review with positive implications’ status reflects the potential financial and operational benefits that will be derived from Endurance being a significant operation within a larger, higher-rated organisation.
The ratings will remain under review pending the completion of the transaction and review by AM Best regarding Sompo’s future operating plans for Endurance.
The six affiliates of Endurance that are under review include: Endurance Assurance Corporation, Endurance Worldwide Insurance, Endurance American Specialty Insurance Company, Endurance American Insurance Company, Endurance Risk Solutions Assurance Company and American Agri-Business Insurance Company.
Endurance Specialty Insurance, Bermuda, Sompo Japan Nipponkoa, Asia-Pacific, Insurance, Ratings, Shares, AM Best, M&A