AM Best Revises Under Review Status to Negative for Credit Ratings of Randall & Quilter Investment Holdings Ltd. and Its Rated Subsidiaries

AM Best has revised the implications of the under review status to negative from developing for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" (Excellent) of Accredited Surety & Casualty Co. Inc. (ASC) (Orlando, FL), Accredited Specialty Insurance Co. (ASI) (Phoenix, AZ) and Accredited Insurance (Europe) Ltd. (AIEL) (Malta). Concurrently, AM Best has revised the implications of the under review status to negative from developing for the Long-Term ICR of "bbb-" (Good) of Randall & Quilter Investment Holdings Ltd. (R&Q) (Bermuda) [AIM: RQIH], the non-operating holding company of the group. ASC, ASI and AIEL are wholly owned subsidiaries of R&Q.

The Credit Ratings (ratings) reflect R&Q's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating actions follow the announcement on 25 May 2022, that R&Q's shareholders did not approve the required special resolutions for the proposed acquisition of R&Q by Brickell PC Insurance Holdings LLC (Brickell). The acquisition agreement included the issue of USD 100 million of convertible preference shares to Brickell, which would have mitigated the impact of an expected IFRS loss for 2021 of between USD 135 million and USD 145 million on R&Q's capital base.