AM Best has decided to maintain 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) for Accredited Specialty Insurance Company (based in Gilbert, AZ), Accredited Surety and Casualty Company, Inc. (located in Orlando, FL), and Accredited Insurance (Europe) Limited (based in Malta), collectively referred to as Accredited.
These Credit Ratings (ratings) are based on Accredited’s very strong balance sheet strength, as assessed by AM Best, along with its adequate operating performance, limited business profile, and appropriate enterprise risk management.
In a trading update released on April 11, 2024, Randall & Quilter Insurance Holdings Ltd. (R&Q) announced an expected adverse development of approximately 23% of the group’s net reserves for the year ending Dec. 31, 2023. This includes the USD 64.2 million adverse reserve development identified in the first half of 2023, primarily attributed to tail claim development, as well as inflation and abuse claim development across the group’s portfolio.
These ratings were initially placed under review with developing implications on Oct. 22, 2023, when R&Q entered 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 progressing as expected for the sale to conclude by the second quarter of 2024.
AM Best anticipates keeping the ratings under review with developing implications status until the completion of the sale process. At that time, the agency will evaluate the quality and extent of support provided by Onex Corporation to Accredited and resolve the ratings review accordingly.
For more information on these Credit Ratings and relevant disclosures, including details of the office responsible for issuing each individual rating, please refer to AM Best’s Recent Rating Activity web page. Additional information on the use and limitations of Credit Rating opinions can be found in the Guide to Best’s Credit Ratings. For guidance on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases, please consult the Guide to Proper Use of Best’s Ratings & Assessments.
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