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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 24, 2023 04:30 PM (EDT)
AM Best has revised the implications of the under review status to developing from negative for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Accredited Specialty Insurance Company (ASI) (Gilbert, AZ), Accredited Surety and Casualty Company, Inc. (ASC) (Orlando, FL) and Accredited Insurance (Europe) Limited (AIEL) (Malta), collectively known as Accredited.
The Credit Ratings (ratings) reflect Accredited’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating actions follow the announcement on Oct. 22, 2023, that R&Q Insurance Holdings Ltd. (R&Q) had entered into a conditional agreement to sell 100% of the equity interest in Randall & Quilter America Holdings Inc., the intermediate holding company of Accredited, to funds advised by the Onex Corporation. Closing of the sale is conditional on R&Q majority shareholder approval, regulatory approvals, and customary consents from certain R&Q debt providers. The sale is also conditional on R&Q’s Chief Executive Officer William Spiegel and Chief Financial Officer Thomas Solomon transferring to Accredited upon the closing.
The ratings were placed under review with negative implications on April 6, 2023, following the announcement on April 4, 2023, that R&Q was reviewing strategic options to separate its program management and legacy insurance business, and that the group was expected to report a material operating loss for 2022.
The ratings are expected to remain under review until the sale process is complete, at which point AM Best will assess the quality and extent of support provided by Onex Corporation to Accredited and resolve the ratings review for Accredited.
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 Performance Assessments, 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 specializing 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.