AM Best has placed Vantage Risk Ltd. (Bermuda) and its affiliates’ credit ratings under review with developing implications, following the announcement that Howard Hughes Holdings (HHH) will acquire Vantage Group from Carlyle and Hellman & Friedman.
These include the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Vantage Risk and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company, which do business as Vantage Group.
The ratings reflect Vantage Group’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.
On 18th December 2025, holding company HHH signed a definitive agreement to acquire 100% of specialty insurer and reinsurer Vantage Group Holdings Ltd. for approximately $2.1 billion in an all-cash transaction.
The transaction is expected to close in the second quarter of 2026, subject to regulatory approval.
The acquisition will be financed through a combination of HHH’s cash on hand and non-interest-bearing, non-voting preferred stock issued to Pershing Square Holdings Ltd. (Pershing Square). The preferred shares will be split into 14 equally sized tranches, which HHH will have the right to repurchase at the end of each fiscal year for the first seven years following the transaction’s close.
AM Best expects Vantage Group’s operations to remain broadly consistent post-transaction, with the exception of Pershing Square entering into a fee-free investment management agreement over the company’s investment portfolio. This will result in higher allocations to public equities post-acquisition, although the increased equity risk will be partially offset by higher allocations to cash and short-term Treasuries, as well as a reduction in underwriting leverage through capital contributions.
