AM Best holds Fidelis under review

Fidelis’ credit ratings will remain under review with negative implications following its announcement that certain regulatory approvals have been secured for the separation of its current configuration into a balance sheet company, which will continue to hold reserves, record the premiums issued, pay claims, manage investments, and utilise a managing general underwriter, which will underwrite business on behalf of the balance sheet entity.

The transaction is expected to close in early January 2023 and is evolving in line with AM Best’s expectations.

Specifically, these ratings include the financial strength rating of A (‘excellent’) and the long-term issuer credit ratings of a (‘excellent’) of Fidelis Insurance Bermuda, Fidelis Underwriting (UK) and Fidelis Insurance Ireland Designated Activity Company, as well as the long-term ICR of bbb (‘good’) of Fidelis Insurance Holdings (Bermuda), the ultimate holding company, including the long-term issue credit rating of bb+ (‘fair’) of Fidelis Insurance Holdings’s $304 million ($58 million currently outstanding) 9% preference shares due 2050.

The under review with negative implications status will be resolved once the transaction has been completed, AM Best said.