AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Canopius US Insurance, Inc. (Wilimington, DE) and Canopius Reinsurance AG (Switzerland). Both entities are wholly-owned subsidiaries of Canopius AG (Canopius) (Switzerland), the non-operating holding company of the Canopius group of companies.
AM Best expects Canopius consolidated year-end 2018 risk-adjusted capitalisation to be significantly lower than previously anticipated, following worse-than-expected operating results for that year. The group is committed to implementing a number of actions in the short term to improve its risk-adjusted capitalisation to the strongest level, as measured by Bests Capital Adequacy Ratio (BCAR). The under review with negative implications status reflects the execution risk associated with the successful and timely implementation of these capital management actions, and the possibility that risk-adjusted capitalisation will not be restored to a level supportive of the current ratings.
AM Best is conducting detailed discussions with Canopius management team regarding its capital and business plans, and will assess the impact of any capital management actions on the groups risk-adjusted capitalisation over the coming months.
This press release relates to Credit Ratings that have been published on AM Bests 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 AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
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