A.M. Best Comments on Credit Ratings of Validus Reinsurance, Ltd. Following Agreement to Acquire Crop Risk Services

A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Validus Reinsurance, Ltd. (Validus Re) (headquartered in Hamilton, Bermuda), a subsidiary of Validus Holdings, Ltd. (Validus) [NYSE:VR], remain unchanged following the announcement by Validus of its agreement to acquire Crop Risk Services (CRS). The outlook of the FSR is stable, while the outlook of the Long-Term ICR is positive.

Validus announced its agreement to acquire CRS, a general agent specializing in primary crop insurance based in Decatur, Illinois, for $127.5 million in cash. The transaction includes a long-term marketing services agreement with the seller, Archer Daniels Midland Company. The transaction is expected to close in the second quarter of 2017.

As Validus implements its business plan, A.M. Best will monitor the extent to which the change in business mix will alter the company’s risk profile and affect its risk-adjusted returns.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170207006462/en/

A.M. BestSusan Molineux, +1-908-439-2200, ext. 5829Senior Financial Analystsusan.molineux@ambest.comorSteven Chirico, +1-908-439-2200, ext. 5087Directorsteven.chirico@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

Validus Holdings, Ltd. (delisted) (NYSE:VR)
Historical Stock Chart
From Mar 2024 to Apr 2024