The credit ratings of Bermudian-based Fidelis Insurance Holdings Limited and its subsidiaries remain under review with negative implications, AM Best has said.

The ratings agency said Fidelis has received regulatory approvals for the separation of its current configuration into a balance sheet company, which will continue to hold reserves, record the premiums issued, pay claims, manage investments and utilise a managing general underwriter, which will underwrite business on behalf of the balance sheet entity.

The transaction is expected to close in early January and is evolving in line with AM Best’s expectations, it said.

AM Best said Fidelis’s credit ratings will remain under review with negative implications after its announcement that certain regulatory approvals have been secured.

Specifically, it said, these ratings include the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a” (Excellent) of Fidelis Insurance Bermuda Limited, Fidelis Underwriting Limited (United Kingdom) and Fidelis Insurance Ireland Designated Activity Company, as well as the long-term ICR of “bbb” (Good) of Fidelis Insurance Holdings Limited, the ultimate holding company, including the long-term issue credit rating of “bb+” (Fair) of Fidelis Holdings’ $304 million ($58 million currently outstanding) 9 per cent preference shares due in 2050.

AM Best said the under review with negative implications status will be resolved once the transaction is completed.