Endurance Credit Ratings Placed Under Review

October 5, 2016

Following the confirmation that they will be acquired by Tokyo-based Sompo Holdings, A.M. Best has placed the Financial Strength Rating [FSR] of A [Excellent] and the Long-Term Issuer Credit Ratings [Long-Term ICR] of “a” of Endurance Specialty Insurance Ltd. and its rated affiliates under review with positive implications.

Concurrently, A.M. Best has placed the Long-Term ICR of “bbb” and the Long-Term Issue Credit Ratings [Long-Term IR] of its publicly traded parent, Endurance Specialty Holdings Ltd. under review with positive implication.

Early this morning, Endurance confirmed that SOMPO Holdings and Endurance “ entered into a definitive agreement for the acquisition of 100% of the outstanding ordinary shares of Endurance by SOMPO for US$93 per share in cash.”

The Bermuda-based company said, “The aggregate consideration is JPY 637.5 bn [approximately US$ 6, 304 m[i]], which represents approximately a 40.3% premium to Endurance’s closing share price on 3 October 2016 and approximately a 41.6% premium to the average share price over the last 3 months.”

“The acquisition has been approved by the Board of Directors of Endurance and is subject to Endurance shareholder approval at a shareholders’ meeting.

The transaction remains subject to shareholder and regulatory approval and is expected to close in the first quarter of 2017.

A.M. Best said, “The under review with positive implications status reflects the potential financial and operational benefits that will be derived from Endurance being a significant operation within a larger, higher-rated organization.

“The ratings will remain under review pending the completion of the transaction and review by A.M. Best regarding Sompo’s future operating plans for Endurance.”

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