A.M. Best has commented that the financial strength rating of ‘A’ (Excellent) and the issuer credit ratings (ICR) of “a” of Ironshore Insurance Ltd. (Bermuda) and its affiliated operating companies: Ironshore Indemnity Inc. (Minneapolis, MN), Ironshore Specialty Insurance Company (Phoenix, AZ) and Ironshore Europe Limited (Ireland), collectively referred to as Ironshore, and the ICR of “bbb” of Ironshore Inc. (Cayman Islands), “are not immediately affected by the recent events surrounding its ultimate parent, Fosun International Limited.”
The ratings, however, will “remain under review with negative implications.”
Best said it views the announcement that Fosun’s Chairman, Guo Guangchang, is assisting investigations being conducted by the Chinese judicial authority as a “fluid situation and is in the process of assessing the potential impact, if any, this event may have on the ratings of Ironshore.”
Best placed Ironshore’s ratings under review with negative implications on July 31, 2015, pending its acquisition by Fosun, and maintained that under review status on Nov. 23, 2015, shortly after the close of the transaction as the rating agency continued to analyze additional information regarding Ironshore’s capital structure.
Best said the existing under review status on Ironshore reflects its “concern over the weak financial profile of Fosun, represented by its high financial leverage and constrained liquidity position. These recent events create an additional level of uncertainty as to Fosun’s continued ability to improve its financial position within a time frame” that or Best had originally contemplated.
Best said it would continue to “monitor this situation and conduct further discussions with management to assess Ironshore’s governance structure and regulatory oversight, which together could insulate Ironshore’s capital from adverse financial conditions at Fosun.”
Best also indicated that it would “continue to monitor the developments at Fosun and the implications for Ironshore, as well as Fosun’s other rated insurance subsidiaries; however, the current ratings of Ironshore are unchanged.”
Source: A.M. Best
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