In light of worse-than-expected operating results for 2018 at Canopius AG, A.M. Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Canopius US Insurance, Inc. and Canopius Reinsurance AG.
Both Canopius US Insurance and Canopius Reinsurance are wholly owned subsidiaries of Canopius AG, the latter of which A.M. Best expects to produce significantly lower consolidated year-end 2018 risk-adjusted capitalisation than previously anticipated, driven by “worse-than-expected operating results for that year.”
The ratings agency states that the group is committed to implementing numerous actions in the short-term in an effort to improve its risk-adjusted capitalisation to the strongest level, as measured by A.M. Best’s Capital Adequacy Ratio (BCAR).
A.M. Best notes that the under review with negative implications is a reflection of the execution risks associated with the implementation of these capital management actions, as well as the possibility that the firm’s risk-adjusted capitalisation will not be improved to a level that supports its current ratings.
