A.M. Best Places Ratings of Ironshore Inc. and Its Subsidiaries Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has placed under review with negative implications the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of “a” of Ironshore Insurance Ltd. (Bermuda) and its affiliated operating companies: Ironshore Indemnity Inc. (Minneapolis, MN), Ironshore Specialty Insurance Company (Phoenix, AZ) and Ironshore Europe Limited (Ireland) (collectively referred to as Ironshore). Concurrently, A.M. Best also has placed under review with negative implications the ICR of “bbb” of Ironshore Inc. (Cayman Islands).

The rating action follows an announcement that Ironshore and Fosun International Limited (Fosun) have entered into a definitive agreement for Fosun to acquire the remaining 80% interest in Ironshore, on top of the existing 20% ownership stake Fosun already holds.

A.M. Best acknowledges that Ironshore continues to maintain solid stand-alone rating attributes and the transaction is expected to provide Ironshore with greater access to long-term committed capital and the potential for a more global distribution platform. However, the under review with negative implications status reflects A.M. Best’s concerns regarding Fosun’s credit profile and its financial leverage, which could potentially place a strain on Ironshore’s stand-alone capitalization under certain stress scenarios. The under review status will be removed once the transaction closes and A.M. Best completes its assessment of Fosun, the details of the new capital structure and the implications of Fosun’s ownership of Ironshore.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Scott Mangan, 908-439-2200, ext. 5593

Senior Financial Analyst

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Greg Reisner, 908-439-2200, ext. 5224

Managing Senior Financial Analyst

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Christopher Sharkey, 908-439-2200, ext. 5159

Manager, Public Relations

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Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

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Source: A.M. Best