A.M. Best Places Credit Ratings of Endurance Specialty Holdings, Ltd. & Its Subsidiaries Under Review With Positive Implicati...
06 October 2016 - 5:56AM
Business Wire
A.M. Best has placed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” of Endurance Specialty Insurance Ltd.
(Endurance) (Bermuda) and its rated affiliates under review with
positive implications. Concurrently, A.M. Best has placed the
Long-Term ICR of “bbb” and the Long-Term Issue Credit Ratings
(Long-Term IR) of its publicly traded parent, Endurance
Specialty Holdings Ltd. (Bermuda) [NYSE: ENH], under review
with positive implication. (See below for a detailed listing of the
companies and ratings.)
These Credit Rating (rating) actions follow the recent
announcement that Endurance Specialty Holdings Ltd. (Endurance) has
entered into a definitive agreement with SOMPO Holdings,
Inc. (Sompo), under which Sompo will acquire Endurance. Under
the terms of the transaction, Sompo will pay approximately $6.3
billion to acquire 100% of the outstanding ordinary shares of
Endurance, which translates to $93 per share. The transaction
remains subject to shareholder and regulatory approval and is
expected to close in the first quarter of 2017.
The under review with positive implications status reflects the
potential financial and operational benefits that will be derived
from Endurance being a significant operation within a larger,
higher-rated organization. The ratings will remain under review
pending the completion of the transaction and review by A.M. Best
regarding Sompo’s future operating plans for Endurance.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been
placed under review with positive implications for Endurance
Specialty Insurance Ltd. and its following affiliates:
- Endurance Assurance
Corporation
- Endurance Worldwide Insurance
Limited
- Endurance American Specialty
Insurance Company
- Endurance American Insurance
Company
- Endurance Risk Solutions Assurance
Co.
- American Agri-Business Insurance
Company
The following Long-Term IRs of Endurance Specialty Holdings
Ltd. have been placed under review with positive
implications
--“bbb” on $335 million 7% senior unsecured notes, due 2034
--“bbb” on $300 million 4.7% senior unsecured notes, due 2022
(unconditionally assumed from Montpelier Re Holdings
Ltd.)
--“bb+” on $230 million 7.5% Series B non-cumulative preferred
shares
The following indicative shelf ratings have been placed under
review with positive implications for debt securities available
under the existing shelf registration for Endurance Specialty
Holdings Ltd.:
--“bbb” on senior unsecured debt
--“bbb-”on subordinated debt
--“bb+” on preferred stock
Endurance Holdings Capital Trust I & II (guaranteed
by Endurance Specialty Holdings Ltd.):
--“bb+” on preferred securities
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20161005006348/en/
A.M. BestVictoria OhorodnykFinancial
Analyst+1 908 439 2200, ext.
5326victoria.ohorodnyk@ambest.comorGreg
ReisnerDirector+1 908 439 2200, ext.
5224greg.reisner@ambest.comorChristopher
SharkeyManager, Public Relations+1 908 439 2200, ext.
5159christopher.sharkey@ambest.comorJim
PeavyDirector, Public Relations+1 908 439 2200, ext.
5644james.peavy@ambest.com
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