AM Best has maintained the under review with negative implications status for the Financial Strength Rating (FSR) of B++ (Good) and Long-Term Issuer Credit Rating (Long-Term ICR) of bbb of Maiden Reinsurance, Ltd. (Maiden Re) (Pembroke Bermuda). At the same time, AM Best has maintained the under review with negative implications status for the Long-Term ICR of bb of Maiden Holdings, Ltd. [NASDAQ:MHLD] (MHLD) (Pembroke, Bermuda) and its intermediate holding company subsidiary, Maiden Holdings North America, Inc. (Delaware), as well as all associated Long-Term Issue Credit Ratings. Concurrently, AM Best has withdrawn these Credit Ratings (ratings) as the companies have requested to no longer participate in AM Bests interactive rating process.
At the same time, AM Best has withdrawn the FSR of B++ (Good) and the Long-Term ICR of “bbb” while under review with negative implications of Maiden Reinsurance North America, Ltd. (Jefferson City, MO), following its sale to a subsidiary of Enstar Group Limited (Enstar), based on insufficient information to support an ongoing credit opinion of the company consistent with AM Best rating criteria.
The ratings reflect Maiden Res balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The balance sheet strength assessment reflects AM Bests expectation that the transaction relating to loss reserves for calendar years prior to 2018 that remain on Maiden Res books will be transferred to Enstar and will close in the near-term; this would be in line with expectations set out in the announced agreement. The ratings also reflect the public announcements that the reinsurance agreement between Maiden Re and a subsidiary of AmTrust Financial Services, Inc. was terminated effective Jan. 1, 2019 and that MHLD had sold its rights to certain European auto business to its partner in that arrangement.
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.
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