After Merger Announcement, KBRA Puts Olympus’ Rating on Watch

A day after SageSure announced plans to acquire Florida-based Olympus Insurance, a financial rating firm said it has some concerns.

KBRA, the Kroll Bond Rating Agency, issued a notice Thursday that it has placed Olympus’ “BBB+” financial strength rating on “watch developing,” pending the merger that’s planned for early next year.

“The Watch Developing status reflects the uncertainty with respect to the near-to-medium term impact of the pending acquisition of Olympus Insurance on the company’s financial position, projected results, and risk profile in the wake of the announcement that SageSure Insurance Managers LLC will be acquiring Olympus Insurance’s parent company, Gemini Financial Holdings Corp.,” KBRA said in a statement.

Olympus, ranked as the 29^th-largest property insurer in Florida, with some 80,000 policies in force, has held the BBB+ rating since December 2022, with a stable outlook ever year, according to KBRA. The rating firm’s lead analyst could not immediately be reached for comment Friday morning for further explanation.

SageSure officials also could not be reached.

SageSure announced this week that it will acquire Olympus’ parent, Gemini Financial Holdings and a managing general agent for Olympus, while a SageSure parent company will take over Olympus Insurance and its captive reinsurer. Read more here.

SageSure, with offices in Jersey City, New Jersey, operates in 16 states and focuses on catastrophe coverage. Olympus has historically written coverage for more affluent homeowners in Florida.

Topics Mergers & Acquisitions