AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of Randall & Quilter America Holdings Inc.’s Members
26 Abril 2024 - 1:57PM
Business Wire
AM Best has maintained the under review with developing
implications status for the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Ratings of “a-”
(Excellent) of Accredited Specialty Insurance Company (Gilbert,
AZ), Accredited Surety and Casualty Company, Inc. (Orlando, FL) and
Accredited Insurance (Europe) Limited (Malta), collectively known
as Accredited.
The Credit Ratings (ratings) reflect Accredited’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.
As per a trading update dated April 11, 2024, Randall &
Quilter Insurance Holdings Ltd. (R&Q) announced that it is
expected to realize adverse development of ~23% of the group’s net
reserves for the year to Dec. 31, 2023, which includes the USD 64.2
million of adverse reserve development identified at the half-year
2023. This primarily relates to tail claim development, as well as
inflation and abuse claim development across the group’s
portfolio.
The ratings were placed under review with developing
implications on Oct. 22, 2023, when R&Q entered into a
conditional agreement to sell 100% of the equity interest in
Randall & Quilter America Holdings Inc., the intermediate
holding company of Accredited, to funds advised by the Onex
Corporation. As of April 24, 2024, R&Q confirmed that
shareholder approval, regulatory approvals, and customary consents
from certain R&Q debt providers were on track for the sale to
close by the second quarter of 2024.
The ratings are expected to remain under review with developing
implications status until the sale process is complete, at which
point AM Best will assess the quality and extent of support
provided by Onex Corporation to Accredited and resolve the ratings
review for Accredited.
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 Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Billiah Moturi Financial Analyst +1 908 882
2191 billiah.moturi@ambest.com
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Relations +1 908 882 2310
christopher.sharkey@ambest.com
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908 882 2318 al.slavin@ambest.com