{"id":449889,"date":"2021-03-03T13:51:13","date_gmt":"2021-03-03T18:51:13","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=449889"},"modified":"2021-03-03T13:51:13","modified_gmt":"2021-03-03T18:51:13","slug":"am-best-removes-from-under-review-with-developing-implications-and-affirms-credit-ratings-of-siriuspoint-ltd-and-its-rated-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-removes-from-under-review-with-developing-implications-and-affirms-credit-ratings-of-siriuspoint-ltd-and-its-rated-subsidiaries\/","title":{"rendered":"AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of SiriusPoint Ltd. and Its Rated Subsidiaries"},"content":{"rendered":"

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AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of SiriusPoint Ltd. and Its Rated Subsidiaries<\/b><\/p>\n

LONDON–(BUSINESS WIRE<\/a>)–AM Best<\/b> has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201ca-\u201d of the rated operating subsidiaries of SiriusPoint Ltd. (SiriusPoint) (Bermuda) [NYSE: SPNT]. (See below for a detailed listing of the companies and ratings.) Additionally, AM Best has removed from under review with developing implications and affirmed the Long-Term ICRs of \u201cbbb-\u201d of SiriusPoint, Sirius International Group, Ltd. (Bermuda), and Third Point Re (USA) Holdings Ltd. (TP USA) (Wilmington, DE), which are non-operating holding companies. Concurrently, AM Best has removed from under review with developing implications status and affirmed the Long-Term Issue Credit Rating of \u201cbbb-\u201d on the USD 115 million, 7% senior unsecured notes, due 2025, of TP USA. The outlook assigned to these Credit Ratings (ratings) is stable.\n<\/p>\n

\nThe ratings reflect SiriusPoint\u2019s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of the group\u2019s operating subsidiaries factor in their strategic importance to SiriusPoint.\n<\/p>\n

\nThe rating actions follow the completion of AM Best\u2019s assessment of the consolidated financial strength of the newly formed SiriusPoint group, resulting from the merger between Third Point Reinsurance Ltd. (TP Re), Sirius International Insurance Group Ltd. (SIIG) and Yoga Merger Sub Ltd. on 26 February 2021.\n<\/p>\n

\nSiriusPoint\u2019s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level. The assessment also considers SiriusPoint\u2019s good financial flexibility as a listed entity on the New York Stock Exchange. Partially offsetting rating factors include the group\u2019s relatively high-risk investment strategy and moderate financial leverage, as well as its limited capital fungibility due to a significant portion of consolidated shareholders\u2019 equity being held as a Safety Reserve in the group\u2019s Swedish subsidiary.\n<\/p>\n

\nSiriusPoint\u2019s operating performance is expected to be adequate over the underwriting cycle. The technical performance of TP Re and SIIG in recent years has been impacted negatively by significant catastrophe losses. Prospectively, SiriusPoint\u2019s management aims to rebalance the business mix away from catastrophe-exposed property business toward less volatile accident and health and specialty lines. This is expected to lead to improved and more stable technical profitability for the group. AM Best will monitor closely the execution of the group\u2019s business plan.\n<\/p>\n

\nSiriusPoint\u2019s neutral business profile assessment reflects its market position as a mid-tier global reinsurer. The group benefits from global platforms, including in Europe, the United States, Bermuda and at Lloyd\u2019s. SiriusPoint has a good level of diversification by line of business, which is expected to improve further with its continued expansion into the accident and health segment as well as into casualty and specialty lines.\n<\/p>\n

\nAM Best has removed from under review with developing implications, affirmed the FSRs of A- (Excellent) and the Long-Term ICRs of \u201ca-\u201d and assigned stable outlooks for the following subsidiaries of SiriusPoint Ltd.:\n<\/p>\n