A.M. Best Co. has commented that the financial strength rating of ‘A ‘(Excellent) and issuer credit ratings of “a” of Bermuda-based IPCRe Limited and IPCRe Europe Limited (Dublin, Ireland), both reinsurance subsidiaries of IPC Holdings Ltd. “remain under review with negative implications following the recent shareholder vote to terminate a merger agreement with Max Capital Group Ltd.”
Best has also maintained all debt ratings of IPC under review with negative implications.
“The under review status reflects the uncertainty with respect to IPC’s future ownership and to a lesser extent, the pending retirement of its long-standing Chief Executive Officer, Jim Bryce, for whom a long-term successor is being sought,” Best continued.
“At this time, IPC is being actively pursued by an outside company whose intention is to acquire IPC with or without the approval of IPC’s management or Board of Directors. IPC shareholders have requisitioned IPC’s Board of Directors to hold a special shareholders’ meeting to vote on replacing the present Board of Directors. Concurrently, IPC’s Board of Directors and management continue to solicit potential bidders during this period.”
Best added that it would keep the ratings under review with negative implications until IPC’s ownership position is stabilized, and Best is able to complete its “analysis of the company’s strategic role as part of another organization or as a stand-alone entity if no transaction is completed.”
Source: A.M. Best – www.ambest.com
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