AM Best Downgrades Credit Ratings of Catlin Specialty Insurance Company; Places Credit Ratings Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “aa-” (Superior) of Catlin Specialty Insurance Company (Catlin) (Wilmington, DE). In addition, AM Best has placed these Credit Ratings (ratings) under review with negative implications.

The rating actions follow the announcement that the Catlin is to be acquired by North American Casualty Group (NAC). Catlin is to be sold as a shell, while being licensed to write excess and surplus business in all states except Oklahoma. This transaction is anticipated to close in second-quarter 2022, pending regulatory approval, at which time AM Best expects that Catlin will be added to NAC’s existing pooling agreement.

NAC’s FSR of A (Excellent) and Long-Term ICRs of “a” (Excellent) are currently have a negative outlook. Prior to the announced sale, Catlin’s ratings benefited from implicit and explicit support from its parent organization, AXA S.A. The ratings downgrades reflect the removal of this benefit.

The negative implications reflect that NAC’s ratings are currently on negative outlook, as previously referenced. Catlin’s ratings will remain under review pending the completion of the acquisition and AM Best’s assessment of post-acquisition rating fundamentals.

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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Dan Hofmeister, CFA, FRM, CAIA, CPCU

Senior Financial Analyst

+1 908 439 2200, ext. 5385

dan.hofmeister@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Gregory Dickerson

Associate Director

+1 908 439 2200, ext. 5161

gregory.dickerson@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best