AM Best: Ratings of SAC Re Remain Unchanged
A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of S.A.C. Re, Ltd. (SAC Re) (Hamilton, Bermuda) are unchanged and the ratings remain under review with negative implications, until the anticipated closing of Hamilton Insurance Group, Ltd.’s (a Bermuda holding company) acquisition of SAC Re.
The ratings agency said, “On December 9, 2013, Hamilton Insurance Group, Ltd. announced that it entered into a definitive agreement to acquire SAC Re. A.M. Best recognizes that signing of the definitive agreement is a positive development for SAC Re, and should the transaction close as expected it will fully resolve the reputational risks previously identified.
“However, A.M. Best still needs to complete its evaluation of the new business plans as well as the new investment strategy. The transaction is expected to close prior to December 31, 2013, subject to Bermuda Monetary Authority approval and other closing conditions.”
A group of investors led by insurance-industry veteran Brian Duperreault recently struck a deal to buy billionaire trader Steven A. Cohen’s SAC Capital Advisors LP’s reinsurance business.
