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A.M. Best Places Credit Ratings of XL Seguros Mexico, S.A. de C.V. Under Review With Developing Implications

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A.M. Best Places Credit Ratings of XL Seguros Mexico, S.A. de C.V. Under Review With Developing Implications

A.M. Best has placed under review with developing implications the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit Rating of "a+" and the Mexico National Scale Rating of "aaa.MX" of XL Seguros Mexico SA de CV (Mexico).

The Credit Rating (rating) actions taken on the Mexican subsidiary follow the announcement of an agreement to purchase XL Group Ltd (XL) [NYSE: XL] by AXA Group on March 5, 2018, for $57.60 per share, for a total consideration value of $15.3 billion. The transaction represents a 33% premium to XL closing share price on March 2, 2018. This transaction is expected to close in the second half of 2018 and is expected to be financed as an all cash deal. The ratings will remain under review until the deal closes, and A.M. Best completes its evaluation of organizational changes and XL's strategic position within the new structure. A positive rating outcome could occur depending on the levels of implicit and explicit support provided to XL and its subsidiaries after the close of the transaction. However, if the transaction is unsuccessful there could be negative rating pressure on XL if operational issues emerge. The under review status may be updated in the interim period if new facts and circumstances present themselves.

Source: A.M. Best Ratings Services, Inc. Used under license.