FEBRUARY 15, 2019 12:09 PM (EST)
AM Best Comments on Credit Ratings of Sirius International Insurance Group, Ltd. and Its Main Rated Subsidiaries
Senior Financial Analyst
+44 20 7397 0270
Ghislain Le Cam, CFA, FRM
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Manager, Public Relations
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Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 15, 2019 12:09 PM (EST)
AM Best has commented that the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “bbb” of Sirius International Insurance Group, Ltd. (SIIG) (Bermuda) [NASDAQ: SG] and Sirius International Group, Ltd. (Bermuda); and the Financial Strength Ratings of A (Excellent) and the Long-Term ICRs of “a” of Sirius Bermuda Insurance Company Ltd. (Bermuda), Sirius International Insurance Corporation (publ) (Sweden) and Sirius America Insurance Company (New York, NY) are unchanged following the reported missed bond payment by and liquidity issues pertaining to their ultimate parent, China Minsheng Investment Group Corp., Ltd. (CMIG).
AM Best believes that SIIG’s listing on the Nasdaq in November 2018, and subsequent compliance with the Nasdaq listing requirements, strengthened its governance and improved its transparency, reinforcing its independence from its ultimate parent, CMIG.
Following the listing, CMIG’s shareholding in SIIG was reduced, and SIIG promptly established a majority independent board of directors. Out of six board directors, only one represents CMIG. AM Best also notes that the independence of SIIG’s board of directors is protected by a shareholders’ agreement, valid until November 2021. Furthermore, SIIG and its rated subsidiaries operate in jurisdictions considered to have strong regulatory oversight, notably Bermuda, Sweden, the United States and the United Kingdom.
AM Best considers that these elements shield SIIG’s financial strength from any potential adverse parental influence, in particular the risk of capital extraction from the company.
AM Best will continue to monitor closely any developments regarding CMIG’s financial strength, and could take prompt action should the mechanisms in place to preserve SIIG’s integrity prove ineffective.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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