AM Best has placed a review on the credit ratings of Vantage Risk Ltd. (Bermuda) and its affiliates, the impact of which is emerging, following Howard Hughes Holdings’ (HHH) announcement that it will acquire Vantage Group from Carlyle and Hellman & Friedman.
These include an A- (Excellent) financial strength rating and an “a-” (Excellent) long-term issuer credit rating for Vantage Risk and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company (doing business as Vantage Group).
The rating reflects Vantage Group’s balance sheet strength, which AM Best assesses as very strong, good operating performance, limited business profile and appropriate enterprise risk management.
On December 18, 2025, Holding Company HHH signed a definitive agreement to acquire 100% of the shares of specialty insurance and reinsurer Vantage Group Holdings Ltd. in an all-cash transaction of approximately $2.1 billion.
The transaction is expected to close in the second quarter of 2026, pending regulatory approvals.
The acquisition will be funded through HHH’s cash on hand and the issuance of non-interest-bearing, non-voting preferred stock to Pershing Square Holdings Ltd. (Pershing Square). The preferred shares will be divided into 14 equal-sized tranches, and HHH will have the right to repurchase the preferred shares at the end of each fiscal year for the first seven years after closing.
AM Best expects Vantage Group’s business to remain broadly consistent post-deal, with the exception of Pershing Square entering into a no-fee investment management agreement for the company’s portfolio. This will result in an increased allocation to public equities following acquisitions, although the increased equity exposure will be partially offset by increased allocations to cash and short-term Treasury securities and lower underwriting leverage through capital contributions.
