S&P Global Ratings has upgraded its long-term issuer credit and financial strength ratings for Sompo International Holdings’ (SIH) core operating companies, from A to A+.
SIH and its operating subsidiaries are also considered to have a stable outlook, and S&P raised its long-term issuer credit and senior debt ratings on SIH from BBB+ to A-.
The move follows S&P’s revision of the group status on SIH from highly strategic to core, which reflects SIH’s plans to create a worldwide platform and introduce a new global clearance system, announced in October 2017.
The group aims to bring all of its worldwide subsidiaries operating outside of Japan under the SIH umbrella by 2020, and has already transferred Sompo America and all former Endurance Specialty Holdings companies to SIH.
S&P’s change to SIH’s group status considers the increased integration and strategic importance of SIH to the overall group following the restructure, and recognises the alignment between their underwriting, risk management, and operations approaches.
SIH is also believed to be integral to the group’s current identity and future strategy, as it can leverage the existing ex-Endurance operating platform and will increasingly become a material contributor to the group, currently constituting around 11% of the group’s gross written premiums and 37% of its shareholders’ equity.
S&P expects the ratings and outlook on SIH and its operating companies to move in tandem with those on the group.