S&P Puts Norway’s NEMI on CreditWatch/Negative After Share Offer

Standard & Poor’s Ratings Services announced that it has placed its “BBB” long-term counterparty credit and insurer financial strength ratings on Oslo-based non-life insurer NEMI Forsikring ASA (NEMI – formerly Norway Energy & Marine Insurance ASA) on CreditWatch with negative implications.

S&P said it had taken the move following the announcement that Iceland-based insurer Tryggingamidstödin hf (TM) has made a formal offer for the entire issued share capital of NEMI. “It is understood that TM has received pre-acceptances amounting to 68 percent of NEMI’s share capital,” S&P added.

“The CreditWatch placement reflects the uncertainties surrounding the transaction, including whether the offer will proceed,” stated S&P credit analyst Peter McClean. “Furthermore, the impact on NEMI of a successful bid is unclear, although in our opinion there would be some doubt as to the sustainability of a rating in the ‘BBB’ category based on a review of the public information available.”

S&P said it would “continue to monitor developments and update its rating opinion as further details emerge.”