Fitch Affirms White Mountains Insurance Group's IDR at 'BBB+'
OREANDA-NEWS. Fitch Ratings has affirmed the 'BBB+' Issuer Default Rating (IDR) of White Mountains Insurance Group, Ltd. (White Mountains).
KEY RATING DRIVERS
Fitch's affirmation of White Mountains' IDR follows the closing of the sale of Sirius International Insurance Group, Ltd. (Sirius) to CM International Holding PTE Ltd, the Singapore-based investment arm of CMI for approximately $2.6 billion. White Mountains also recorded a $658 million gain when Symetra Financial Corporation was sold to Sumitomo Life Insurance Company of Feb. 1, 2016.
Fitch's rationale for the affirmation of White Mountains's rating reflects the company's low financial and operating leverage, opportunistic business approach, platform of property/casualty specialty insurance, and favorable financial flexibility.
The sale of these investments has given White Mountains considerable levels of cash. Fitch believes this cash will be used to evaluate potential acquisitions, share buy backs, or increased dividends. Sirius was the single largest holding of White Mountains as measured by equity.
Fitch will evaluate White Mountains' rating as any material changes to the company takes place.
RATING SENSITIVITIES
Key rating triggers that could lead to a downgrade are:
--Credit weakening at any majority owned subsidiary;
--Material investments into lower credit profile industries;
--Financial leverage above 30%.
Key rating triggers that could lead to an upgrade include:
--Improvement in overall credit profile of operating investment companies.
Комментарии