The credit score rankings of R&Q Insurance coverage Holdings and its rated subsidiaries have been positioned underneath assessment with unfavorable implications, following the group’s revelation that its board is taking a look at strategic choices to separate R&Q’s program administration and legacy insurance coverage companies.
In an announcement by AM Greatest, the ranking company stated: “AM Greatest has positioned underneath assessment with unfavorable implications the monetary power ranking of A- (glorious) and the long-term issuer credit score rankings (long-term ICR) of ‘a-‘ (glorious) of Accredited Surety and Casualty Firm, Inc. (ASC), Accredited Specialty Insurance coverage Firm (ASI), and Accredited Insurance coverage (Europe) Restricted (AIEL).
“Concurrently, AM Greatest has positioned underneath assessment with unfavorable implications the long-term ICR of ‘bbb-’ (good) of R&Q Insurance coverage Holdings Ltd, the non-operating holding firm of the group. ASC, ASI, and AIEL are wholly owned subsidiaries of R&Q.”
In line with AM Greatest, it had beforehand thought of the abovementioned Accredited corporations to be strategically essential to the group and it’ll now look at the impression of the deliberate break up on their ranking fundamentals.
The credit standing company added: “The anticipated working loss for 2022, pushed by R&Q’s legacy operations, will doubtless result in a fabric weakening of the group’s risk-adjusted capitalisation, as measured by Greatest’s Capital Adequacy Ratio.