A.M. Best Comments on Credit Ratings of Validus Reinsurance, Ltd. Following Agreement to Acquire Crop Risk Services
February 07 2017 - 3:54PM
Business Wire
A.M. Best has commented that the Financial Strength
Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit
Rating (Long-Term ICR) of “a” of Validus Reinsurance, Ltd.
(Validus Re) (headquartered in Hamilton, Bermuda), a subsidiary of
Validus Holdings, Ltd. (Validus) [NYSE:VR], remain unchanged
following the announcement by Validus of its agreement to acquire
Crop Risk Services (CRS). The outlook of the FSR is stable, while
the outlook of the Long-Term ICR is positive.
Validus announced its agreement to acquire CRS, a general agent
specializing in primary crop insurance based in Decatur, Illinois,
for $127.5 million in cash. The transaction includes a long-term
marketing services agreement with the seller, Archer Daniels
Midland Company. The transaction is expected to close in the
second quarter of 2017.
As Validus implements its business plan, A.M. Best will monitor
the extent to which the change in business mix will alter the
company’s risk profile and affect its risk-adjusted returns.
This press release relates to Credit Ratings 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 see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20170207006462/en/
A.M. BestSusan Molineux, +1-908-439-2200, ext.
5829Senior Financial
Analystsusan.molineux@ambest.comorSteven Chirico,
+1-908-439-2200, ext.
5087Directorsteven.chirico@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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