Best’s News & Research Service - August 27, 2021 08:54 AM (EDT)
AM Best Maintains Under Review With Negative Implications Status for Credit Ratings of Humboldt Re Limited
- August 27, 2021 08:54 AM (EDT)
London //BestWire// - AM Best has maintained the under review with negative implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Humboldt Re Limited (Humboldt Re) (Guernsey).
The Credit Rating (rating) actions follow the recent signing of a sale purchase agreement by Humboldt Re’s shareholder. The under review with negative implications status reflects AM Best’s uncertainty regarding the impact that the change in ownership would have on the company’s prospective financial strength. The terms of the sale remain confidential at present. AM Best expects to resolve the under review status once the transaction has completed, and when a full analysis of the company’s credit fundamentals can be performed within its new group structure.
Since Humboldt Re entered runoff in December 2020, its underwriting exposures have reduced and its reported capital has increased. The company produced a small profit in the first quarter of 2021.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.