Best Gives Ironshore 'A-Minus' Rating

A.M. Best Co. has assigned a financial strength rating of "A-minus" (Excellent) and an issuer credit rating of "A-minus" to Ironshore Reinsurance Ltd. The outlook for both ratings is stable.

Ironshore Re will operate through a fronting arrangement as a Bermuda-based insurance company focused on broker-sourced directors and officers coverage in the U.S. market. The assigned ratings reflect Ironshore Re's solid capitalization and conservative business plan, as well as an experienced and highly regarded management team.

Ironshore Re is an affiliate of recently formed Ironshore Insurance Ltd., whose principal market profile is property catastrophe and property all-risk coverage. Ironshore's expansion into directors and officers liability coverage was presented to A.M. Best in the company's business plan during the initial rating process.

The rating firm noted that Ironshore is capitalized with approximately $1 billion in common equity from investors, which include Bear Stearns Merchant Banking, Corporate Partners, Calera Capital, TowerBrook Capital Partners and Greenhill Capital Partners.

A.M. Best said it will continue to closely monitor the quarterly performance of Ironshore and Ironshore Re against each company's respective business plan, and any material negative deviations in terms of management, earnings, capitalization or risk profile could result in downward pressure on both companies' assigned ratings.