Ironshore removed from ‘Under Review’ by AM Best due to Liberty acquisition

Ratings agency AM Best has removed Ironshore Insurance and its subsidiaries from “under review with developing implications” following its  acquisition by Liberty Mutual Holding Company’s (LMHC).

Boston-based LMHC has, through its wholly-owned subsidiary Liberty Mutual Insurance Company, acquired 100 percent ownership of Bermuda-based Ironshore and its subsidiaries from Fosun International for approximately $3.0 billion.

AM Best has also affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Ironshore Insurance and its affiliated operating companies.

Ironshore’s ratings reflect the company’s enhanced business profile under the ownership of the Liberty Mutual Insurance Companies, which maintains strong brand recognition and a dominant market profile as the fourth largest property/casualty insurer in the United States, AM Best said.

Ironshore’s existing business profile, in conjunction with its integration into Liberty Mutual’s operations, should solidify its position as a leader in the specialty insurance market, AM Best continued. Also reflected in the rating are Ironshore’s strong risk-adjusted capitalization and its effective optimization of distribution channels in viewing a broad spectrum of submissions to develop a select portfolio of global specialty business.

Prior to its acquisition by Liberty Mutual, Ironshore was successful in organically building out a profitable book of business despite a highly competitive marketplace, according to the ratings agency. AM Best expects Ironshore’s senior management and core book of business to benefit Liberty Mutual as it builds out its specialty business segment, making the combined operations a significant player in the space.

Partially offsetting these positive factors is the execution risk of integrating Ironshore’s operations into the Liberty Mutual organization. Additionally, while the combined business will have increased scale and added capacity, market conditions remain challenging, particularly for organic growth.

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