Ironshore’s ratings remain under review by AM Best
US rating firm AM Best has maintained the under review with negative implications status of the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of “a” of property and casualty insurer Ironshore and its affiliated operating companies.
Simultaneously, the ICR of “bbb” of Ironshore Inc (Cayman Islands) remains under review with negative implications.
The rating action comes after Ironshore and Fosun International announced that they have finalised their definitive agreement for Fosun to acquire the remaining 80 percent interest in Ironshore, on top of the existing 20 percent ownership stake that Fosun already holds.
AM Best acknowledges that Ironshore continues to maintain solid stand-alone rating attributes and the transaction is expected to provide Ironshore with greater access to long-term committed capital and the potential for a more global distribution platform.
However, the under review with negative implications status reflects the rating agency’s concerns regarding Fosun’s credit profile and its financial leverage, which could potentially place a strain on Ironshore’s stand-alone capitalisation under certain stress scenarios.
AM Best said the under review status will be removed once it completes its assessment of new details relating to the capital structure between the two parties.