A.M. Best has placed under review with negative implications the financial strength rating of “A (Excellent)” and the issuer credit ratings (ICR) of “a” of Sirius International Insurance Corporation and its subsidiary Sirius America Insurance Company.
In addition, A.M. Best has also placed under review with negative implications the ICR of “bbb” of Sirius International Group.
The rating action follows the recent announcement that Sirius Group’s parent White Mountains Insurance has entered into an agreement with China Minsheng Investment Group (CMI), under which CMI will acquire 100 percent of the common shares of Sirius Group in an all cash transaction.
The ‘under review’ status reflects the uncertainties over CMI’s financial strength and its long-term plans for Sirius Group, particularly regarding future underwriting risk appetite and investment strategy.
The current rating reflects its solid risk-adjusted capitalisation, which is supported by its safety reserve of £787 million at year-end 2014 and strong operating profitability.
