A.M. Best Comments on Credit Ratings of MS Amlin plc, Amlin AG and Lloyd’s Syndicate 2001

LONDON--(BUSINESS WIRE)-- A.M. Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of MS Amlin plc (MS Amlin) (United Kingdom) remains under review with developing implications. In addition, the following Credit Ratings (ratings) remain under review with developing implications: the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a+” of Amlin AG (Switzerland); the FSR of A+ (Superior) and the Long-Term ICR of “aa-” of Lloyd’s Syndicate 2001, which is managed by Amlin Underwriting Limited (United Kingdom); and the Long-Term Issue Credit Rating of “bbb+” on GBP 230 million 6.5% fixed-to-floating rate subordinated notes maturing 18 December 2026, issued by MS Amlin.

The ratings were placed under review with developing implications in September 2015, following the announcement of the acquisition of MS Amlin by Mitsui Sumitomo Insurance Company Limited (MSI). The acquisition closed on 1 February 2016, at which time A.M. Best commented that the ratings remained under review pending an evaluation of MSI’s plans for the MS Amlin entities and the impact of these plans on their risk-adjusted capitalisation.

Since February, management has discussed with A.M. Best its plans to integrate MSI’s Lloyd’s and reinsurance businesses into MS Amlin, as well as the progress of these integration plans. MSI’s Lloyd’s managing agent and syndicate and MSI’s Bermudian reinsurance entity, MS Frontier Reinsurance Limited, will be merged into the MS Amlin group, with the integration expected to be completed around the end of 2016.

However, A.M. Best has not yet been able to evaluate fully the effect of these integration plans on the risk-adjusted capitalisation of MS Amlin. The ratings will remain under review until A.M. Best has received and evaluated further information regarding plans for the capitalisation of MS Amlin and its subsidiaries.

A.M. Best expects to resolve the under review status of the ratings within three to six months.

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.

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A.M. Best

Mathilde Jakobsen
Associate Director, Analytics

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Catherine Thomas
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Jim Peavy
Assistant Vice President, Public Relations

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Source: A.M. Best