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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 09, 2023 09:58 AM (EDT)
AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of Argus Insurance Company Limited (Argus Insurance) and Bermuda Life Insurance Company Limited (Bermuda Life). Both companies are subsidiaries of Argus Group Holdings Limited (Argus Group) [BSX: AGH.BH]. Concurrently, AM Best has placed under review with developing implications the Long-Term ICR of “bbb-” (Good) of Argus Group. All companies are domiciled in Hamilton, Bermuda.
The action on these Credit Ratings (ratings) follows Argus’ June 6, 2023, announcement that the company intends to buy a large minority interest in another Bermuda-domiciled insurance company, BF&M Limited (BF&M). While the balance sheet strength assessment is expected to remain supportive of the current ratings, the new equity investment, financed partially through a debt facility, is projected by AM Best to have a moderate impact on risk-adjusted capital. Operating results at either Argus or BF&M between the signing of the share purchase agreement and the close of the transaction could impact this assessment.
The ratings will remain under review with developing implications pending regulatory approvals from the Bermuda Monetary Authority and purchase of shares by Argus. This is expected to occur late in the third quarter of 2023 or in early fourth quarter.
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.