A.M. Best Comments on Credit Ratings of Arch Capital Group Ltd. & Its Subsidiaries Following the Closing of United Guaranty C...
January 03 2017 - 3:41PM
Business Wire
A.M. Best has commented that the Financial Strength
Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit
Ratings (Long-Term ICR) of “aa-” of Arch Reinsurance
Ltd (Hamilton, Bermuda) [Nasdaq: ACGL] and its strategic
affiliates remain unchanged following the announcement that Arch
Capital Group Ltd. (ACGL) (Hamilton, Bermuda) completed its
acquisition of United Guaranty Corporation from American
International Group, Inc. at year-end 2016. The Credit Ratings
(ratings) remain under review with developing implications.
Additionally, the Long-Term ICRs of “a-” and the
Long-Term Issue Credit Ratings (Long-Term IR) of ACGL and
Arch Capital Group (US) Inc. (Delaware) remain under review
with developing implications. (See below for a detailed listing of
the companies and ratings).
A.M. Best recognizes that this acquisition significantly expands
ACGL’s mortgage insurance business, and changes the risk profile
and financial leverage of the organization going forward. A.M. Best
continues to be in discussion with management with respect to the
integration, strategic plans and the enterprise risk management
approach as it regards this material acquisition. A.M. Best
anticipates resolve of the under review status once it completes
its analysis, which is expected within the first quarter of
2017.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-”
remain under review with developing implications for Arch
Reinsurance Ltd and its following affiliates:
- Arch Insurance Company
- Arch Specialty Insurance
Company
- Arch Excess & Surplus Insurance
Company
- Arch Indemnity Insurance
Company
- Arch Insurance Canada Ltd.
- Arch Insurance Company (Europe)
Limited
The following Long-Term IRs remain under review with developing
implications:
Arch Capital Group Ltd.—
-- “a-” on $300 million 7.35% senior unsecured
notes, due 2034-- “bbb” on $325 million 6.75% non-cumulative
preferred shares, Series C
The following indicative Long-Term IRs remain under review with
developing implications for debt securities available under the
existing shelf registration:
Arch Capital Group Ltd.—
-- “a-” on senior unsecured debt-- “bbb+”
on subordinated debt-- “bbb” on preferred stock
Arch Capital Group (US) Inc. (guaranteed by Arch Capital
Group Ltd.)—
-- “a-” on senior unsecured debt-- “bbb+”
on subordinated debt-- “bbb” on preferred stock
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 © 2017 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/20170103006257/en/
A.M. BestSteven Chirico, +1-908-439-2200, ext.
5087Directorsteve.chirico@ambest.comorRobert
DeRose, +1-908-439-2200, ext. 5453Senior
Directorrobert.derose@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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