OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Accredited Specialty Insurance Company (Gilbert, AZ), Accredited Surety and Casualty Company, Inc. (Orlando, FL) and Accredited Insurance (Europe) Limited (Malta), collectively known as Accredited.
The Credit Ratings (ratings) reflect Accredited’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.
As per a trading update dated April 11, 2024, Randall & Quilter Insurance Holdings Ltd. (R&Q) announced that it is expected to realize adverse development of ~23% of the group’s net reserves for the year to Dec. 31, 2023, which includes the USD 64.2 million of adverse reserve development identified at the half-year 2023. This primarily relates to tail claim development, as well as inflation and abuse claim development across the group’s portfolio.
The ratings were placed under review with developing implications on Oct. 22, 2023, when R&Q entered into a conditional agreement to sell 100% of the equity interest in Randall & Quilter America Holdings Inc., the intermediate holding company of Accredited, to funds advised by the Onex Corporation. As of April 24, 2024, R&Q confirmed that shareholder approval, regulatory approvals, and customary consents from certain R&Q debt providers were on track for the sale to close by the second quarter of 2024.
The ratings are expected to remain under review with developing implications status until the sale process is complete, at which point AM Best will assess the quality and extent of support provided by Onex Corporation to Accredited and resolve the ratings review for Accredited.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
