AM Best Affirms Rating Of Vantage Risk
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Ratings of “a-” [Excellent] of Vantage Risk Ltd. [Bermuda] and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company [both domiciled in Wilmington, DE], which do business as Vantage Group. The outlook assigned to these Credit Ratings [ratings] is positive.
The ratings agency said, “These ratings reflect Vantage Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
“The under review with developing implications status was removed upon completion of Howard Hughes Holdings’ [HHH] [NYSE: HHH] acquisition of Vantage Group from Carlyle and Hellman & Friedman, for approximately USD 2.1 billion. This transaction closed on June 4, 2026.
“The acquisition was financed from HHH’s mixture of cash-on-hand and non-interest bearing, non-voting preferred stock issued to Pershing Square Holdings, Ltd [Pershing Square]. The preferred shares will be split into 14 equally sized tranches that HHH will have the right to repurchase at the end of each fiscal year for the first seven years post-closing of the transaction.
“Vantage Group’s stand-alone operations are anticipated to remain broadly consistent post-transaction, with the exception of Pershing Square entering into a fee-free investment management agreement overseeing the group’s investment portfolio. The change in investment management will coincide with a change in strategy, with a higher allocation to public equities. Although, AM Best’s expectation is that the higher equity risk will be offset by a reduction in underwriting leverage via capital contributions from its parent company [HHH].
“The positive outlooks reflect AM Best’s expectation that over the near term, the group will continue to expand its presence in the specialty and reinsurance markets and execute its business plans post-acquisition. Vantage Group consists of three segments — insurance, reinsurance and insurance-linked securities.
“AM Best recognizes the independence of Vantage Group under its new ownership group, and expects that Vantage Group will benefit from future infusions of capital rather than dividend outflows. These assumptions will be monitored closely under its new ownership structure.”
