At a glance
- As Private Wealth Daily previously reported, Samsung Fire & Marine Insurance agreed on Nov. 10 to lift its stake in Canopius Group to 80.6%.
- Samsung Fire & Marine will add 40.6% to its existing 40% holding for an 80.6% controlling interest.
- For cedents and retrocessionaires with exposure to Canopius Reinsurance, the ratings do not move while the review runs, so collateral terms, counterparty limits and rating triggers tied to the A- level remain in place.
AM Best placed the A- financial strength and a- long-term issuer credit ratings of Canopius US Insurance and Canopius Reinsurance Limited under review with positive implications on Nov. 11. As Private Wealth Daily previously reported, Samsung Fire & Marine Insurance agreed on Nov. 10 to lift its stake in Canopius Group to 80.6%.
Samsung Fire & Marine will add 40.6% to its existing 40% holding for an 80.6% controlling interest. KKR funds would own 12.1% and Korea Investment Corporation 7.3%, subject to minor closing adjustments. Canopius US Insurance is based in Wellington, Delaware, and Canopius Reinsurance is based in Bermuda. Both are wholly owned subsidiaries of Canopius Group, a Jersey holding company.
For cedents and retrocessionaires with exposure to Canopius Reinsurance, the ratings do not move while the review runs, so collateral terms, counterparty limits and rating triggers tied to the A- level remain in place.
AM Best said the positive implications reflect the potential financial and operational benefits Canopius may derive from being part of a significantly larger insurance organization of greater financial strength. The ratings will likely remain under review until the transaction completes and AM Best has carried out a detailed review of Canopius' future business plans.
Reported by the Cat bonds & reinsurance desk from AM Best News and Private Wealth Daily archive. Published . Corrections