A.M. Best has placed under review with negative implications the financial strength rating “A (Excellent)” and the issuer credit ratings (ICR) of “a” of Ironshore Insurance and its affiliated operating companies.
The rating agency also has placed under review with negative implications the ICR of “bbb” of Ironshore in the Cayman Islands.
The rating actions follows an announcement that Ironshore and Forsun International have entered into a definitive agreement for the Chinese company to acquire the remaining 80 percent of Ironshore, on top of the existing 20 percent stake it already holds.
The ‘under review with negative implications’ status reflects A.M. Best’s concerns regarding Fosun’s credit profile and its financial leverage, which could
place a strain on Ironshore’s standalone capitalisation under certain stress scenarios.
The status will be removed once the transaction closes and the assessment of Fosun is complete, the details of the new capital structure and the implications of Fosun’s ownership of Ironshore, according to A.M. Best.
