LONDON–(BUSINESS WIRE)–AM Best has commented that the Long-Term Issuer Credit Ratings
(Long-Term ICRs) of “bbb” of Sirius International Insurance Group, Ltd.
(SIIG) (Bermuda) [NASDAQ: SG] and Sirius International Group, Ltd.
(Bermuda); the Financial Strength Ratings of A (Excellent) and the
Long-Term ICRs of “a” of Sirius Bermuda Insurance Company Ltd.
(Bermuda), Sirius International Insurance Corporation (publ) (Sweden)
and Sirius America Insurance Company (New York, NY) are unchanged
following the triggering of cross-default provisions on USD 800 million
bonds issued by subsidiaries of SIIG’s ultimate parent, China Minsheng
Investment Group Corp., Ltd (CMIG).
As commented in February 2019, AM Best considers that, following its
listing on the Nasdaq in November 2018, SIIG has safeguards in place
that shield the company’s financial strength from potential adverse
parental influence, including the risk of capital extraction to a level
that would be detrimental to its operations. In particular, SIIG
complies with the Nasdaq listing requirements and has implemented solid
governance arrangements, comprising establishing a largely independent
board of directors. Out of seven board members, five are independent
non-executive directors, one is SIIG’s CEO and one represents a CMIG’s
affiliate. The independence of SIIG’s board of directors is protected by
a shareholders’ agreement, which prevents the removal of any director,
other than for cause, until November 2021.
Furthermore, SIIG and its rated subsidiaries operate in jurisdictions
considered to have strong regulatory oversight, notably Bermuda, the
United States, Sweden and the United Kingdom.
In AM Best’s opinion, these elements insulate SIIG and its subsidiaries
from the debt and liquidity difficulties of CMIG. However, the current
situation at CMIG constitutes a significant test of these safeguard
mechanisms, and should they prove less effective than anticipated, AM
Best would promptly review the ratings of SIIG and its rated
subsidiaries. Rating actions could also be triggered should there be a
deterioration in SIIG’s rating fundamentals due to the reputational risk
associated with CMIG. A change in control of SIIG would also lead AM
Best to review the ratings.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information regarding
the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media use of
Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Charlotte Vigier
Senior Financial Analyst
+44
20 7397 0270
[email protected]
Ghislain
Le Cam, CFA, FRM
Director, Analytics
+44 20 7397
0268
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
