Credit ratings agency AM Best has placed the Financial Strength Rating (FSR) of Sompo Japan Insurance Inc. and its subsidiaries under review with positive implications, citing potential “material benefits in Sompo group’s business profile following the acquisition of Aspen.”
AM Best feels that the move could accelerate Sompo’s geographic diversification and lead to a significant enhancement in its presence in the global property and casualty re/insurance market.
The ratings agency has placed under review with positive implications the FSR of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Sompo Japan Insurance Inc. (SJ) (Japan) and its subsidiaries.
Concurrently, AM Best has placed under review with positive implications the Long-Term ICR of “a-” (Excellent) of Sompo International Holdings Ltd. (SIH) (Pembroke, Bermuda), and has placed under review with positive implications the Long-Term Issue Credit Rating of “a-” (Excellent) on $335 million 7% senior unsecured notes due by 2034, which is guaranteed by SIH.
Once the deal closes, which is expected in the first half of next year, subject to regulatory approvals, insurer and reinsurer Aspen will become a subsidiary of SIH, the intermediate holding company under Sompo Japan.
“The ratings will remain under review with positive implications pending the completion of the transaction and until AM Best can evaluate fully the impact on SJ’s rating fundamentals,” said AM Best.
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