A.M. Best has placed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit of “a-” of Bermuda-based Hamilton Re Ltd., under review with developing implications. Also under review are Wilmington, Del.-based Hamilton Specialty Insurance Co. and Hamilton Insurance Co.
This rating action follows the resignation of Hamilton Insurance Group Ltd. Chairman and CEO Brian Duperreault, who has been appointed president, CEO and director of American International Group.
Additionally, the rating action reflects AIG’s tentative agreement to acquire all outstanding shares of Hamilton U.S. Holdings Inc. (HUSA), a wholly owned subsidiary of Hamilton Insurance Group Ltd., for approximately $110 million; the transfer of Attune ownership from HUSA to Hamilton Insurance Group Ltd.; as well as other provisions, as outlined in the memorandum of understanding between AIG, Hamilton, and Two Sigma Insurance Quantified.
The under review with developing implications status reflects the complex nature of the transaction, with potential financial and operational benefits and disadvantages, A.M. Best said. The ratings will remain under review pending A.M. Best’s evaluation of Hamilton’s final revised business plan and full analysis of the transaction, as well as the appointment of a permanent replacement for Duperreault.
Hamilton Insurance Group announced it has replaced Duperreault by naming William C. Freda as chairman and David A. Brown as interim CEO.
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