A.M. Best Comments on Credit Ratings of Liberty Mutual Holding Company Inc. Following Acquisition Announcement of Ironshore Inc. and Its Subsidiaries

By a News Reporter-Staff News Editor at Investment Weekly News -- A.M. Best has commented that the Credit Ratings of Liberty Mutual Holding Company Inc. (LMHC) (Boston, MA) and its subsidiaries remain unchanged following LMHC's recent announcement that it has signed a definitive agreement to purchase Ironshore Inc. (Cayman Islands) and its subsidiaries from its ultimate parent, Fosun International Limited.

The transaction is expected to cost approximately $3.0 billion, or 1.45 times Ironshore's tangible book value at year-end 2016. The closing is expected to take place in the first half of 2017 pending regulatory approvals and other customary closing conditions. The modest size of the transaction, along with Ironshore's historical profitability, limits LMHC's execution and integration risks associated with the pending acquisition. The proposed transaction will not be subject to any financing conditions.

Once the transaction is closed, it is expected that Ironshore will continue to operate with the same management team, brand and structure within LMHC's larger organization. In addition to an established management team, with a successful track record within specialty lines, the deal provides LMHC's specialty lines operations with enhanced scale, diversification, distribution and capabilities. LMHC has been focusing on growing its specialty lines operations and capabilities and this transaction helps to accelerate those aspirations. This press release relates to Credit Ratings that have been published on A.M. Best's 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. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED. View source version on businesswire.com: http://www.businesswire.com/news/home/20161205006230/en/

Keywords for this news article include: A.M. Best, Investing, Financial Companies, Insurance Companies, Insurance Broker Companies, Liberty Mutual Holding Company.

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