AM Best Places Credit Ratings of R&Q Insurance Holdings Ltd and Its Rated Subsidiaries Under Review with Negative Implications
06 April 2023 - 2:57PM
Business Wire
AM Best has placed under review with negative
implications the Financial Strength Rating of A- (Excellent) and
the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-”
(Excellent) of Accredited Surety and Casualty Company, Inc. (ASC)
(Orlando, FL), Accredited Specialty Insurance Company (ASI)
(Phoenix, AZ) and Accredited Insurance (Europe) Limited (AIEL)
(Malta). Concurrently, AM Best has placed under review with
developing implications the Long-Term ICR of “bbb-” (Good) of
R&Q Insurance Holdings Ltd (R&Q) (Bermuda) [AIM: RQIH], the
non-operating holding company of the group. ASC, ASI and AIEL are
wholly owned subsidiaries of R&Q.
The Credit Ratings (ratings) reflect R&Q’s balance sheet
strength, which AM Best assesses as very strong, as well as its
adequate operating performance, neutral business profile and
appropriate enterprise risk management.
The rating actions follow the announcement on 4 April 2023, that
R&Q is reviewing strategic options to separate its program
management and legacy insurance businesses, and that the group is
expected to report a material operating loss for 2022. AM Best had
previously considered ASC, ASI and AIEL (the Accredited companies)
to be strategically important to the R&Q group and will now
review the impact of the likely separation on their rating
fundamentals. Furthermore, the expected operating loss for 2022,
driven by R&Q’s legacy operations, will likely lead to a
material weakening of the group’s risk-adjusted capitalisation, as
measured by Best’s Capital Adequacy Ratio (BCAR).
The ratings are expected to remain under review until AM Best
has sufficient clarity over the rating fundamentals of the
Accredited companies and the R&Q group, subsequent to their
likely separation. It is considered probable that in the near
future, the Accredited companies will form an independent rating
unit, separate from R&Q.
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 specialising 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 © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Kanika Thukral Associate Director, Analytics +44 20 7397
0327 kanika.thukral@ambest.com Tim Prince Director,
Analytics +44 20 7397 0320 timothy.prince@ambest.com
Christopher Sharkey Associate Director, Public Relations +1 908
439 2200, ext. 5159 christopher.sharkey@ambest.com Al Slavin
Senior Public Relations Specialist +1 908 439 2200, ext. 5098
al.slavin@ambest.com
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