S&P Global Ratings on March 12 lowered the financial strength rating of Sompo Japan Canopius Reinsurance AG to BB+ from A+ and subsequently withdrew the ratings, with the outlook at the time of withdrawal being stable.
The action comes after Japan-based Sompo Holdings Inc. completed the sale of the Switzerland-based firm to Fortuna Holdings Ltd., an affiliate of private equity firm Centerbridge Partners.
S&P said it had previously raised concerns regarding new policies assumed by the firm and if they would be covered by the new parent company. After completion of the deal, SJCRe's management reportedly confirmed that the firm would no longer underwrite open-market business, effective Jan. 1, and would instead solely focus on intragroup reinsurance.
S&P added that it does not expect the ownership change to affect the parental guarantee provided by Sompo Japan Nipponkoa Insurance Inc., so policies acquired before the change of ownership are expected to remain guaranteed.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a seperately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
