Business Wire | Aug 7, 2020 01:18PM EDT

AM Best Changes Under Review With Negative Implications Status to Developing for Credit Ratings of Sirius International Insurance Group and Its Rated Subsidiaries

Aug. 07, 2020

LONDON--(BUSINESS WIRE)--Aug. 07, 2020--AM Best has changed the under review with negative implications status to developing for the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" of Sirius Bermuda Insurance Company Ltd. (Sirius Bermuda) (Bermuda), Sirius International Insurance Corporation (publ) (Sirius International) (Sweden) and its subsidiary Sirius America Insurance Company (Sirius America) (USA). Additionally, AM Best has changed the under review with negative implications status to developing for the Long-Term ICRs of "bbb-" of Sirius International Insurance Group, Ltd. (SIIG) (Bermuda) [NASDAQ: SG] and Sirius International Group, Ltd. (Bermuda), both non-operating holding companies.

The ratings reflect SIIG's consolidated balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings of Sirius Bermuda, Sirius International and Sirius America factor in their strategic importance to SIIG.

The rating actions follow the announcement that SIIG has entered into a definitive agreement to combine with Third Point Reinsurance Ltd. in a cash and stock transaction, subject to customary closing conditions, including regulatory approval. The ratings are under review with developing implications, as AM Best needs to fully assess the financial and operational impact of the transaction on the rating fundamentals of SIIG and its rated subsidiaries. AM Best expects to resolve the under review with developing implications status after the close of the transaction, which is expected to complete during the first quarter of 2021.

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 Guide to 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright (c) 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Jessica Botelho-Young, CA Senior Financial Analyst +44 20 7397 0310 jessica.botelho@ambest.com

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