eLearningClasses.com

A.M. Best Places Credit Ratings of GBG Insurance Limited Under Review With Positive Implications

Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

A.M. Best has placed under review with positive implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of bbb of GBG Insurance Limited (Guernsey). GBG Insurance Limited is a wholly owned subsidiary of GBGI Limited (GBGI), its non-operating holding company, which consolidates the GBG group (GBG).

The Credit Rating (rating) actions follow the announcement on 5 November 2018, that Elm Bidco, L.P. (Bidco) and the board of GBGI reached agreement on the terms of a recommended all-cash offer, to be made by Bidco for the entire share capital of GBGI. Bidco is a Cayman Island exempted limited partnership that is controlled by affiliates of Further Global Capital Management, L.P., a private equity firm that invests in the financial services industry.

The under review with positive implications status reflects A.M. Bests opinion that, based on information currently available, there is a reasonable likelihood that GBGs ratings will be raised following the acquisition. In particular, this reflects Bidcos intention to make a capital injection into GBG of USD 10 million shortly after the close of the transaction in order to improve GBGs risk-adjusted capitalisation and support its prospective business plans. In addition, following the announcement of the offer by Bidco, a new designated chief executive officer with substantial expertise in the life/health insurance sector, was appointed. Over time, A.M. Best believes that there is potential for GBGs enterprise risk management framework to strengthen under the new leadership.

The ratings will remain under review pending the completion of the transaction and A.M. Bests assessment of the impact of the planned change in ownership on GBGs rating fundamentals.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

A.M. Best
Valeria Ermakova, +44 20 7397 0269
Senior
Financial Analyst

[email protected]
or
Christopher
Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations
[email protected]
or
Tim
Prince, +44 20 7397 0320

Director, Analytics
[email protected]
or
Jim
Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations
[email protected]