AM Best Places Credit Ratings of Canopius US Insurance, Inc. and Canopius Reinsurance AG Under Review With Negative Implications

LONDON–(BUSINESS WIRE)–AM 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. (Wilimington, DE)
and Canopius Reinsurance AG (Switzerland). Both entities are
wholly-owned subsidiaries of Canopius AG (Canopius) (Switzerland), the
non-operating holding company of the Canopius group of companies.

AM Best expects Canopius’ consolidated year-end 2018 risk-adjusted
capitalisation to be significantly lower than previously anticipated,
following worse-than-expected operating results for that year. The group
is committed to implementing a number of actions in the short term to
improve its risk-adjusted capitalisation to the strongest level, as
measured by Best’s Capital Adequacy Ratio (BCAR). The under review with
negative implications status reflects the execution risk associated with
the successful and timely implementation of these capital management
actions, and the possibility that risk-adjusted capitalisation will not
be restored to a level supportive of the current ratings.

AM Best is conducting detailed discussions with Canopius’ management
team regarding its capital and business plans, and will assess the
impact of any capital management actions on the group’s risk-adjusted
capitalisation over the coming months.

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

Valeria Ermakova
Senior Financial Analyst
+44
20 7397 0269

valeria.ermakova@ambest.com

Christopher
Sharkey

Manager, Public Relations
+1 908 439
2200, ext. 5159

christopher.sharkey@ambest.com

Tim
Prince

Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com

Jim
Peavy

Director, Public Relations
+1 908 439
2200, ext. 5644

james.peavy@ambest.com