2013-10-04 16:32:04 -
A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Sirius International Insurance Corporation (publ) (Sirius) (Sweden) and the ICR of “bbb” of its upstream intermediate holding company, Sirius International Group Ltd. (Sirius Group) (Bermuda). At the same time, A.M. Best has affirmed the debt ratings of Sirius Group. The outlook for all ratings remains stable. (See below for a detailed listing of the debt ratings.)
The ratings reflect Sirius’ strong risk-adjusted capitalisation, robust earnings and sound risk management.
A.M. Best expects Sirius’ consolidated risk-adjusted capitalisation to remain strong, supported by stable retained earnings and enhanced by its safety reserve, which amounted to SEK 9.6 billion
(USD 1.5 million) at year-end 2012. Given the benign loss environment during the first half of the year, and assuming normal catastrophe activity for the remainder of 2013, technical earnings are likely to exceed that of the prior year (2012: SEK 511 million [USD 79 million]).
These positive rating factors are partially offset by the historical volatility in overall operating performance and ongoing adverse reserve developments in relation to asbestos and environmental exposure at Sirius’ wholly owned US subsidiary, Sirius America Insurance Company.
Upward rating movements are unlikely at present.
Downward rating pressures could occur if there were a material decline in Sirius’ risk-adjusted capitalisation and/or a prolonged deterioration in its operating earnings.
Additionally, A.M. Best Co. has affirmed the FSR of A (Excellent) and the ICR of “a” of Sirius America Insurance Company.
The following debt ratings have been affirmed.
Sirius International Group Ltd.—-- “bbb” on USD 400 million senior unsecured notes, due 2017-- “bb+” on USD 250 million non-cumulative perpetual preference shares
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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