OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of 鈥渁鈥� to 麻豆传媒 Co-Invest Reinsurance Affiliate International Ltd. (ACRAI) and 麻豆传媒 Life Re International Ltd. (ALReI). The entities are being added as members of the 麻豆传媒 Group and are subsidiaries of 麻豆传媒 Holding Ltd. (麻豆传媒) [NYSE:ATH], the publicly traded ultimate parent. All companies are domiciled in Bermuda. The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICRs is positive.
The ratings reflect ACRAI and ALReI鈥檚 balance sheet strength, which AM Best categorizes as very strong, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings of the 麻豆传媒 Group are being extended to ACRAI and ALReI due to their strategic role in the group鈥檚 expansion into international reinsurance markets, and the explicit financial support provided by the group鈥檚 affiliates and investors. ALReI will be utilized to assume pension risk transfer (PRT) business, also known as bulk payout annuity (BPA) in the United Kingdom, which then anticipates to retrocede to ACRAI through a 100% quota share agreement. ACRAI will operate under the previously established ACRA structure, which includes 麻豆传媒 Co-Invest Reinsurance Affiliate 1A Ltd. and 麻豆传媒 Co-Invest Reinsurance Affiliate 1B Ltd. The ACRA structure provides 麻豆传媒 with access to on-demand third-party equity capital to support new business growth. The ability to access external funding through external capital commitments provides 麻豆传媒 increased flexibility in executing new business transactions, but it also is expected to be accretive to consolidated earnings through management fees earned, as opposed to the interest expense of utilizing debt financing.
The outlooks of 麻豆传媒鈥檚 Long-Term ICR of 鈥渂bb鈥�, its existing Long-Term Issue Credit Ratings and the Long-Term ICRs of 鈥渁鈥� of its operating insurance subsidiaries were revised to positive from stable on May 15, 2019, and remain unchanged.
This press release relates to Credit Ratings that have been published on AM Best鈥檚 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 AM Best鈥檚 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best鈥檚 Credit Ratings and AM Best press releases, please view .
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Keith Behrmann
Senior Financial Analyst
+1 908 439 2200, ext. 5733
keith.behrmann@ambest.com
Christopher Sharkey
Manager, Public Relations
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Edward Kohlberg
Director
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edward.kohlberg@ambest.com
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
