A.M. Best has placed under review with negative implications 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).
Best has also placed under review with negative implications the ICR of “bbb” of Ironshore Inc. (Cayman Islands).
Best explained that it has taken the rating actions following “an announcement that Ironshore and Fosun International Limited (Fosun) have entered into a definitive agreement for Fosun to acquire the remaining 80 percent interest in Ironshore, on top of the existing 20 percent ownership stake Fosun already holds.”
Best added, however, that it “acknowledges that Ironshore continues to maintain solid stand-alone rating attributes and the transaction is expected to provide Ironshore with greater access to long-term committed capital and the potential for a more global distribution platform.”
But Best also explained that the under review with negative implications status reflects its “concerns regarding Fosun’s credit profile and its financial leverage, which could potentially place a strain on Ironshore’s stand-alone capitalization under certain stress scenarios.”
In conclusion Best said the under review status would be removed once the transaction closes and Best “completes its assessment of Fosun, the details of the new capital structure and the implications of Fosun’s ownership of Ironshore.
Source: A.M. Best
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