Sompo Japan Canopius Re ratings placed under review by AM Best
AM Best has placed the financial strength rating of A (Excellent) of Sompo Japan Canopius Reinsurance (Switzerland) under review with developing implications.
The rating action follows the successful completion of SOMPO Holdings’ acquisition of Bermuda-based Endurance Specialty Holdings on 28 March 2017, for a total consideration of $6.3 billion.
According to AM Best, the rating action reflected uncertainties over Sompo Japan Canopius Reinsurance’s future business profile and its strategic importance within the Sompo group.
Sompo Japan Canopius Reinsurance was incorporated in Switzerland on 23 November 2015, following the redomiciliation of Canopius Reinsurance from Bermuda. The company underwrites third-party reinsurance business through a network of branches in Switzerland, Bermuda, and prospectively, the US and Singapore. Property and casualty reinsurance is expected to contribute the majority of Sompo Japan Canopius Reinsurance’s reported gross revenues in 2016.
The rating agency said that it will continue to monitor the impact of the transaction on Sompo Japan Canopius Reinsurance’s business profile and its strategic role within the Sompo group. It expects to resolve the under review status when additional details on the company’s future business plans become available.