Credit ratings of Argo Group International Holdings, Ltd. and its subsidiaries have been placed under review with developing implications by AM Best, according to a recent statement by the credit rating agency.
These ratings include the firm’s Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” (Good) and the associated Long-Term Issue Credit Ratings (Long-Term IR). As well as the Financial Strength Rating of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of its operating subsidiaries.
At the same time, AM Best has placed under review with developing implications the Long-Term ICR of “bbb-” (Good) and the Long-Term IRs of Argo Group US, Inc.
The rating actions follow the announcement that Argo Group and Brookfield Reinsurance Ltd. have entered into a definitive merger agreement whereby Brookfield Reinsurance Ltd. will acquire Argo Group in an all-cash transaction valued at approximately $1.1 billion.
The sale has been approved by Argo Group’s board of directors, is subject to shareholder and regulatory approvals, and is expected to be completed in the second half of 2023.
According to AM Best, the under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition on Argo Group’s rating fundamentals.
The ratings will remain under review pending completion of the acquisition, and until AM Best can complete its assessment of Argo Group’s post-acquisition rating fundamentals.
