Best’s News & Research Service - August 29, 2012 02:24 PM (EDT)
A.M. Best Places Ratings of SeaBright Insurance Company Under Review With Negative Implications
OLDWICK, N.J. //BestWire// - A.M. Best Co. has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of “a-” of SeaBright Insurance Company (SeaBright) (Chicago, IL). Concurrently, A.M. Best has also placed under review with negative implications the ICR of “bbb-” of the publicly traded holding company of SeaBright, SeaBright Holdings, Inc. (SHI) (Wilmington, DE) [NYSE: SBX].
The rating actions follow disclosure of a definitive agreement under which Enstar Group Limited will acquire all outstanding shares of SHI. The ratings will remain under review until the close of the transaction and the completion of A.M. Best’s analysis of its impact on the company’s ratings. The transaction is expected to close in the first quarter of 2013, pending regulatory approval.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Catastrophe Analysis in A.M. Best Ratings”; “Understanding BCAR for Property/Casualty Insurers”; and “The Treatment of Terrorism Risk in the Rating Evaluation.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.