A.M. Best has placed under review with developing implications the financial strength rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Zurich-based Sompo Japan Canopius Reinsurance AG.
The credit rating action follows the successful completion the acquisition by Sompo Holdings Inc. of Endurance Specialty Holdings Ltd. on March 28, 2017, for a total consideration of US$6.3 billion.
In particular, the rating action reflects uncertainties over Sompo Japan Canopius Reinsurance AG’s future business profile and its strategic importance within the Sompo group, A.M. Best said.
Sompo Japan Canopius Reinsurance AG was incorporated in Switzerland on Nov. 23, 2015, following the redomestication of Canopius Reinsurance Ltd. from Bermuda.
The company underwrites third-party reinsurance business through a network of branches in Switzerland, Bermuda, and prospectively, the United States and Singapore. Property and casualty reinsurance is expected to contribute the majority of Sompo Japan Canopius Reinsurance AG’s reported gross revenues in 2016, A.M. Best said.
The ratings agency said it will monitor the impact of the transaction on Sompo Japan Canopius Reinsurance AG’s business profile and its strategic role within the Sompo group. A.M. Best expects to resolve the under-review status when additional details on the company’s future business plans become available.
Source: A.M. Best
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