Standard & Poor’s assigned its single-‘A’-minus long-term counterparty and insurer financial strength ratings to Finnish insurer Sampo Industrial Holdings Insurance Co., the nonlife subsidiaries of Sampo PLC, and placed them on CreditWatch with positive implications.
The rating agency’s action takes into account the planned merger of Sampo’s p/c units with Sweden’s If Property & Casualty Insurance Ltd. Sampo would acquire a 38 percent stake in If upon completion of the transaction.
S&P indicated that it expected the ratings to be equalized, and that If had undertaken “to maintain capitalization in the ‘A’ category according to Standard & Poor’s risk-based capital model.”
“Sampo is the market leader in Finland, with a 34% share of nonlife premium income. Its nonlife business is well diversified by line, but is concentrated on the small, mature Finnish market. Consequently, growth prospects are considered limited. Sampo does have some diversity through exposures in other Nordic markets, but these operations are currently modest in size,” said S&P’s announcement.
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