KBRA Withdraws the Rating on Somerset Reinsurance Holdings Ltd. and Assigns a Rating to Somerset Holdings International Ltd.
12 Dec 2024 | New York
KBRA withdraws the BBB+ Issuer Rating on Somerset Reinsurance Holdings Ltd. (SRHL) and assigns an Issuer Rating of BBB+ to Somerset Holdings International Ltd. (SHIL). The Outlook for SHIL’s rating is Stable.
The rating withdrawal on SRHL reflects the merger of SRHL with Somerset Reinsurance Ltd. (Somerset Re). Somerset Re is the surviving entity and SRHL no longer exists.
With this merger SHIL, originally created to affect the investment by Aquarian, remains as the holding company of the group. All holding company-related facilities and functions previously performed by SRHL have been transitioned to SHIL.
Key Credit Considerations
Based on the structural subordination of debtors to policyholders, a regulatory framework where there are fewer restrictions on operating company dividends, and no financial leverage, the issuer rating for SHIL reflects a two-notch differential from Somerset Re’s insurance financial strength rating (IFSR) of A.
Rating Sensitivities
An upgrade of Somerset Re’s IFSR could result in positive rating action.
A downgrade of Somerset Re’s IFSR could result in negative rating action
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