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FOR IMMEDIATE RELEASE
OLDWICK - JULY 06, 2017 08:45 AM (EDT)
A.M. Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of AXIS Specialty Limited and its operating affiliates, as well as the Long-Term ICR of “a-” of AXIS Specialty Limited’s parent, AXIS Capital Holdings Limited (collectively referred to as AXIS) (both domiciled in Hamilton, Bermuda) [NYSE: AXS], remain unchanged following the announcement of AXIS’ agreement to acquire Novae Group plc (Novae). The outlook of these Credit Ratings (ratings) remains stable.
Novae was established in 1986 and is listed on London Stock Exchange. Novae operates through Lloyd’s Syndicate 2007, and in 2016, wrote approximately GBP 900 million of gross written premium. Under the terms of the agreement, AXIS will acquire the diversified specialty (re)insurer for $604 million or 700 pence per share. AXIS will fund the 100% cash transaction through existing resources and the transaction value represents approximately 1.5x tangible book value. The transaction is expected to close in the fourth quarter of 2017. A.M. Best will monitor the transaction and integration of Novae into the wider AXIS group.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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