23 March 2018Insurance

Canopius reinsurance subsidiary gets downgraded following sale

Rating agency AM Best has downgraded Canopius Reinsurance after it reviewed the firm following its  acquisition by Centerbridge Partners.

AM Best has downgraded the FSR to A- (Excellent) from A (Excellent) and the Long-Term ICR to “a-” from “a” of Canopius Reinsurance AG (Canopius Re - previously known as Sompo Japan Canopius Reinsurance, Switzerland).

The rating action follows the March 8, 2018 announcement by Canopius AG (Canopius), the parent company of Canopius Re and Canopius US, that it has been acquired by a private equity consortium led by Centerbridge Partners.

An elevated level of catastrophe risk in recent years has resulted in volatile risk-adjusted capitalisation, AM Best noted. Following the change in ownership, Canopius has lowered its risk appetite and AM Best expects a corresponding reduction in catastrophe exposure. Financial leverage at Canopius’ intermediate parent is considered moderate and has a neutral impact on the group’s balance sheet strength assessment. Furthermore, Canopius’ operates in highly competitive markets.

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More on this story

Insurance
9 March 2018   The sale of specialty re/insurer Canopius by Sompo Japan Nipponkoa Insurance to a private equity consortium led by Centerbridge Partners has been completed.
Insurance
1 September 2017   The senior executives of what will again be known as Canopius have said the business will seek growth through the recruitment of new teams and entry into new classes of business once its ownership passes from Sompo Japan Nipponkoa Insurance to a private equity consortium led by Centerbridge Partners.
Insurance
24 May 2018   Specialty re/insurer Canopius has appointed Stephan Ott as its new head for Continental Europe, reinsurance.