The announced sale of Argo Group International Holdings Ltd has been followed by AM Best placing under review with developing implications the long-term issuer credit rating of “bbb-” (Good) and the associated long-term issue credit ratings of the company.

Concurrently, the ratings agency has placed under review with developing implications the financial strength rating of A- (Excellent) and the long-term ICRs of “a-” (Excellent) of its operating subsidiaries.

At the same time, AM Best has placed under review with developing implications the long-term ICR of “bbb-” (Good) and the long-term IRs of Argo Group US Inc, which is headquartered in San Antonio, Texas.

The rating actions follow the announcement that Argo Group and Brookfield Reinsurance Ltd have entered into a definitive merger agreement whereby Brookfield will acquire Argo in an all-cash transaction valued at approximately $1.1 billion.

The sale has been approved by Argo’s board of directors, is subject to shareholder and regulatory approvals, and is expected to be completed in the second half of 2023.

The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition on Argo Group’s rating fundamentals.

The ratings will remain under review pending completion of the acquisition, and until AM Best can complete its assessment of Argo Group’s post-acquisition rating fundamentals.

The FSR of A- (Excellent) and the long-term ICRs of “a-” (Excellent) have been placed under review with developing implications for Argo Group’s operating subsidiaries: Argo Re Ltd, Argonaut Great Central Insurance Company, Argonaut Insurance Company, Argonaut-Midwest Insurance Company, Aris Title Insurance Corporation, Colony Insurance Company, Peleus Insurance Company, Colony Specialty Insurance Company, Rockwood Casualty Insurance Company, and Somerset Casualty Insurance Company.