A.M. Best places ratings of Mansard Insurance Plc under review with developing implications

• Firm may be rated positively or negatively depending...

 

A.M. Best has placed under review with developing implications the financial strength rating of B (Fair) and the issuer credit rating of “bb+” of Mansard Insurance Plc (Mansard) (Nigeria).

The rating actions follow the announcement by AXA S.A. (AXA) on 28 November 2014 that it had entered into an agreement to acquire 100% of Assur Africa Holdings Limited(AAH), which currently holds a 75% stake in Mansard. The remaining shares of Mansard are listed on the Nigerian Stock Exchange. AXA is expected to purchase the shares of AAH for a total cash consideration of EUR 198 million, payable at the close of transaction by the end of 2014. The ratings have been placed under review with developing implications, as A.M. Best needs to assess the impact of the acquisition on Mansard’s prospective business and capital management strategy.

A.M. Best expects the status of under review with developing implications to be resolved in the first quarter of 2015.

Positive rating actions may occur if AXA can demonstrate strong commitment to Mansard through the provision of extensive reinsurance support or a parental guarantee. Negative rating actions may occur if as a result of the transaction, Mansard’s risk-adjusted capitalisation were to deteriorate owing to a change in the company’s capital management philosophy, higher than supported growth in its risk profile or a significant decline in prospective operating results.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilised:

Analyzing Insurance Holding Company Liquidity

Catastrophe Analysis in A.M. Best Ratings

Equity Credit for Hybrid Securities

Evaluating Non-Insurance Ultimate Parents

Evaluating Country Risk

Insurance Holding Company and Debt Ratings

Rating Members of Insurance Groups

Understanding Universal BCAR

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure. 

 

This press release relates to rating(s) that have been published on A.M. Best's website.For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best

Nicola Gaisford, +(44) 20 7397 0306

Financial Analyst

nicola.gaisford@ambest.com

or

Deniese Imoukhuede, +(44) 20 7397 0277

Associate Director, Analytics

deniese.imoukhuede@ambest.com

or

Christopher Sharkey, +(1) 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +(1) 908 439 2200, ext. 5644

Assistant Vice President, Public Relations

james.peavy@ambest.com

Source: A.M. Best Company, Inc.

Source: Business Wire