Market Overview

A.M. Best Comments on Credit Ratings of Canopius Reinsurance AG and Canopius US Insurance, Inc. Following Announced Ownership Change


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 Canopius Reinsurance AG (Canopius Re - previously known
as Sompo Japan Canopius Reinsurance AG) (Switzerland), as well as the
FSR of A- (Excellent) and the Long-Term ICR of "a-" of Canopius US
Insurance, Inc.
(Canopius US) (Wilmington, DE) remain under review
with negative implications following completion of their parent
company's acquisition by a private equity consortium led by Centerbridge
Partners L.P.

The Credit Ratings (ratings) were placed under review with negative
implications in September 2017 following the announcement that ownership
of Canopius AG would change from SOMPO Holdings Inc.,
whose main operating subsidiary — Sompo Japan Nipponkoa Insurance Inc.
(SJNKI) — currently has a Long-Term ICR of "aa-", to the private equity
consortium. It was subsequently announced on 9 March 2018 that the
acquisition had been completed. Canopius Re and Canopius US had
previously benefited from explicit financial support from SJNKI. SJNKI
will continue to guarantee the payment of claims on policies assumed by
Canopius Re prior to 1 January 2018.

A.M. Best continues to discuss with management their evolving business
plans and the subsequent implications on the financial strength of
Canopius Re and Canopius US. A.M. Best expects to resolve the under
review status on the ratings in the coming weeks.

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
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