AM Best has placed under review with developing implication the financial strength rating of A+ of Arch Reinsurance and its strategic affiliates, after Arch Capital agreed to acquire United Guaranty Corporation and AIG United Guaranty (Asia) from American International Group (AIG).
Expected to close during the third quarter of 2016 or the first quarter of 2017, Arch will acquire both UGC and AIG United Guaranty (Asia) for approximately $3.4 billion of cash and securities.
AM Best has said it will monitor the transaction over its life cycle until the deal closes and afterward when integration execution becomes complete.
During this period, the rating agency said it may perform a rating action if it is perceived that the ratings on Arch are compromised or strengthened based on this transaction or any related or unrelated exogenous event.