Fitch puts Brit on negative watch

Rating agency Fitch has placed insurer Brit on negative watch, following the announcement of the insurer’s sale to Fairfax for £1.22 billion.

The negative watch reflects Fitch's uncertainty about whether ownership by Fairfax will constrain Brit's rating, given that Fitch has not maintained a rating on Fairfax since November 2013.

The rating agency said that it will endeavour to update its view on Fairfax and the impact on Brit's ratings as part of the Fairfax group.

“In particular, we will assess the implications for Brit's capital management and assess the impact of any potential changes in Brit's investment strategy. We will also assess the perceived strategic importance of Brit to Fairfax,” said Fitch.