Receivership has no impact on SiriusPoint’s ratings: AM Best
The ratings of SiriusPoint Ltd’s operating subsidiaries are unchanged following published reports that CMIG International Holding Pte Ltd - the parent of SiriusPoint’s key shareholder CM Bermuda Ltd - has been taken into private receivership by its lenders in Singapore, AM Best said.
The agency has given SiriusPoint’s subsidiaries a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent).
Following the merger of Third Point Reinsurance Company Ltd and Sirius International Insurance Group Ltd in 2021, AM Best said, CM Bermuda’s shareholding and voting rights in SiriusPoint had diminished to 33 per cent and 9.9 per cent, respectively.
Given the restricted influence that CM Bermuda had over the group, AM Best said it considered SiriusPoint’s financial strength as shielded from potential adverse parental influence, including the risk of capital extraction to a level that would be detrimental to its operations.
The agency said: “In AM Best’s opinion, SiriusPoint and its subsidiaries are well insulated from the debt difficulties of CM Bermuda.
“However, it remains unclear whether there could be reputational repercussions given the group’s association with CM Bermuda.
“If SiriusPoint’s rating fundamentals are materially impacted due to the reputational risk associated with CM Bermuda, AM Best will promptly review the ratings.”
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