Canopius acquisition completed
AM Best has said that the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit rating (Long-Term ICR) of “a” of Canopius Reinsurance, as well as the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Canopius US Insurance remain under review with negative implications following completion of their parent company’s acquisition by a private equity consortium led by Centerbridge Partners.
The credit ratings were placed under review with negative implications in September 2017 following the announcement that ownership of Canopius AG would change from SOMPO Holdings 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.
The rating agency said that it continues to discuss with management their evolving business plans and the subsequent implications on the financial strength of Canopius Re and Canopius US. AM Best added that it expects to resolve the under review status on the ratings in the coming weeks.
Canopius, AM Best, ratings, FSR, under review