NOVEMBER 29, 2018 06:07 PM (EST)
A.M. Best Places Credit Ratings of Sagicor Financial Corporation Ltd and Subsidiaries Under Review With Developing Implications
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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 29, 2018 06:07 PM (EST)
A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Sagicor Life Inc. (St. Michael, Barbados), Sagicor General Insurance, Inc. (Bridgetown, Barbados) and Sagicor Life Insurance Company (Austin, TX). Concurrently, A.M. Best has placed under review with developing implications the FSR of B++ (Good) and the Long-Term ICR of “bbb+” of Sagicor Life Jamaica Limited (Kingston, Jamaica). These companies are subsidiaries of Sagicor Financial Corporation Limited (SFC) (Bermuda). Additionally, A.M. Best has placed under review with developing implications the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” of SFC and the Long-Term Issue Credit Rating of “bbb” on the USD 320 million, 8.875% senior unsecured bonds that mature in 2022 of Sagicor Finance (2015) Limited (Cayman Islands).
These Credit Rating (rating) actions come following the announcement that Alignvest Acquisition II Corporation plans to acquire SFC in 2019, pending shareholder and regulatory approvals. Upon completion of the transaction, a new company will be formed that will retain the Sagicor name and branding. Plans also were announced for this new company to acquire Scotiabank’s life insurance operations in Jamaica and Trinidad and Tobago. The acquisition of Scotiabank’s life insurance operations, which are expected to close in late 2019 and early 2020, are not expected to have an impact on A.M Best’s assessment of SFC or its subsidiaries.
These ratings have been placed under review with developing implications due to uncertainty surrounding the final ownership and management structure, and the strategic focus and risk appetite of the new company. A.M. Best will continue to monitor any interim developments, including changes in the risk-adjusted capitalization of the new company, and take any appropriate rating action if necessary.
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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