AM Best removes from under review & affirms ratings of Accredited following Onex acquisition

Global ratings agency AM Best has removed from under review with developing implications, and affirmed the Financial Strength Ratings (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Accredited Specialty Insurance Company, Accredited Surety and Casualty Company, Inc., and Accredited Insurance Limited, which are collectively known as Accredited.

AM Best has also confirmed that the outlooks assigned to these ratings are stable.

These rating actions come shortly after the completed acquisition of Accredited by funds managed by Onex Partners from R&Q Investment Holdings, which took place at the end of June.

The acquisition followed on from R&Q’s provisional liquidation in Bermuda, allowing the conditional sale of its Accredited Program Management business to Onex Corporation to proceed.

Following the acquisition, Accredited now operates as an independent program management company, which provides insurance capacity across Europe, the UK and U.S.

It’s also important to highlight that Accredited provides underwriting capacity to large managing general agents, connecting those organisations with global reinsurance capital in exchange for a recurring fee.

Importantly, Onex also confirmed that following the completion of the acquisition, Accredited’s overall business strategy will remain unchanged.

Going back to AM Best, the agency explained that the ratings reflect Accredited’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

As well as this, AM Best also confirmed that it has increased Accredited’s Financial Size Category to IX based on its consolidated insurance operations under Accredited Insurance Holdings, Inc.

In a statement, Accredited said: “We are pleased to have received this affirmed rating from AM Best which reflects our financial strength as a leading global program manager. This rating will help underpin our growth strategy as an independent business as we seek to be a partner of choice across the US, Europe and the UK. We also appreciate the support we have had from our reinsurers and MGAs during a period of transition, and look forward to helping them achieve their objectives with renewed confidence.”

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