KUALA LUMPUR, Sept 2 (Bernama) — AM Best has placed under review with positive implications the financial strength rating (FSR) of A+ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of “aa-” (Superior) of Sompo Japan Insurance Inc (SJ) and its subsidiaries.
According to the global credit rating agency in a statement, these credit rating (rating) actions follow the group’s announcement to acquire Aspen Insurance Holdings Limited (Aspen) for approximately US$3.5 billion in an all-cash deal. (US$1=RM4.22)
The review also extends to Sompo International Holdings Ltd (SIH), with its “a-” (Excellent) Long-Term ICR and the “a-” rating on its US$335 million seven per cent senior unsecured notes due 2034, which is guaranteed by SIH, now under review.
The move comes after SOMPO Holdings Inc disclosed on Aug 27 that a wholly owned SIH subsidiary will acquire 100 per cent of Aspen’s Class A ordinary shares, positioning Aspen as a new SIH subsidiary under SJ. The acquisition is expected to close in the first half of 2026, pending regulatory approvals.
The under review with positive implications status reflects the potential material benefits in the Sompo group’s business profile following the Aspen acquisition, which could accelerate the geographic diversification and lead to a significant enhancement in its presence in the global property/casualty (re)insurance market.
The ratings will remain under review with positive implications pending the completion of the transaction and until AM Best can fully evaluate the impact on SJ’s rating fundamentals.
Headquartered in the United States, AM Best does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
— BERNAMA
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