Credit ratings agency AM Best has upgraded the Financial Strength Rating (FSR) of Bermuda-based re/insurer Aspen and its subsidiaries to A+ (Superior) from A (Excellent), as the Long-Term Issuer Credit Ratings (Long-Term ICRs) have been changed to “aa-” (Superior) from “a” (Excellent).
The credit ratings agency had placed the re/insurer and its subsidiary under review with positive implications recently.
The outlook assigned to the FSR is stable, while the outlooks assigned to the Long-Term ICRs are positive.
The subsidiaries included in this upgrade are Aspen Insurance UK Limited (AIUK), Aspen Bermuda Limited (ABL), Aspen American Insurance Company (AAIC), and Aspen Specialty Insurance Company (ASIC).
Concurrently, AM Best has also upgraded the Long-Term ICR of Aspen Insurance Holdings Limited (Aspen), a non-operating holding company, to “a-” (Excellent) from “bbb” (Good), and removed it from under review, with positive implications, including the Long-Term Issue Credit Ratings (Long-Term IRs) on the preference shares of Aspen, and the indicative Long-Term IRs.
Meanwhile, the outlook assigned to the Long-Term ICR is positive. These companies are indirect subsidiaries of Sompo Japan Insurance Inc. (SJ), said AM Best.
AM Best explained that the ratings reflect the consolidated balance sheet strength of SJ assessed as “strongest,” its strong operating performance, favourable business profile, and appropriate enterprise risk management.
“The ratings were removed from under review with positive implications following the completion of the acquisition of Aspen by Sompo Holdings, Inc., via a subsidiary of Sompo International Holdings Ltd. (SIH), a wholly owned direct subsidiary of SJ, and a detailed review by AM Best of SIH’s future business plans and integration plans for the Aspen entities,” explained the credit rating agency.
The upgrade of AIUK, AAIC, ABL and ASIC reflects the assignment of full rating enhancement from SJ, as these entities are highly integrated with SJ following the restructuring and implicit and explicit support in the form of net worth maintenance agreements.
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