Endurance Upgraded Following Acquisition

March 30, 2017

A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating [FSR] to A+ from A, and the Long-Term Issuer Credit Ratings to “aa-” from “a” of Bermuda-based Endurance Specialty Insurance and its subsidiaries.

A.M. Best also has upgraded the Long-Term ICR to “a-” from “bbb” and the Long-Term Issue Credit Ratings of its immediate parent, Endurance Specialty Holdings Ltd. [Bermuda]. The outlook assigned to these Credit Ratings is stable.

A statement from the ratings agency said, “These rating actions follow the completed acquisition of Endurance Specialty Holdings Ltd. by SOMPO Holdings, Inc. [Sompo], under which Sompo paid approximately $6.3 billion to acquire 100% of the outstanding ordinary shares of Endurance Specialty Holdings Ltd., which translates to $93 per share. The transaction obtained all necessary regulatory approval.

“The rating actions reflect the operational benefits that Endurance will derive from being a significant operation within a larger organization with deep financial resources. As part of Sompo, Endurance will have more scale to help advance its books of business. Additionally, Sompo will provide explicit financial support to Endurance in the form of a net worth maintenance agreement.

“Furthermore, Endurance’s executive leadership will remain unchanged. Post-acquisition, Endurance will adopt the name and the identity of Sompo and a new holding company will be established titled Sompo International Holdings, Ltd., with all subsequent business being conducted under the Sompo name.”

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