A.M. Best Places Credit Ratings of Aspen Insurance Holdings Limited and Its Subsidiaries Under Review With Developing Implications

A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Aspen Insurance UK Limited (AIUK) (United Kingdom), Aspen Bermuda Limited (ABL) (Bermuda), Aspen American Insurance Company (AAIC) (Dallas, TX) and Aspen Specialty Insurance Company (ASIC) (Bismarck, ND). Concurrently, the Long-Term ICR of “bbb” of Aspen Insurance Holdings Limited (Aspen) (Bermuda) [NYSE: AHL], the non-operating holding company of the Aspen group of companies, and the Long-Term Issue Credit Ratings (Long-Term IRs) on the debt instruments and preference shares of Aspen have been placed under review with developing implications. (Please see below for a detailed listing of the Long-Term IRs.)

The Credit Rating (rating) actions follow Aspen’s announcement on 28 August 2018, that it has entered into a definitive agreement to be acquired by certain investment funds affiliated with Apollo Global Management. Under the terms of the agreement, the Apollo Funds will acquire all of the outstanding shares of Aspen for USD 42.75 per share in cash, representing an equity value of approximately USD 2.6 billion. The transaction is subject to regulatory and shareholder approvals, as well as to certain closing conditions, and is expected to complete in the first half of 2019.

The ratings have been placed under review with developing implications, as A.M. Best needs to assess the impact of the planned change in ownership on Aspen’s balance sheet strength, operating performance and business profile. A.M. Best will conduct detailed discussions with Aspen regarding its planned strategy as a privately held portfolio company of the Apollo Funds. A.M. Best expects the ratings to remain under review pending the completion of the transaction.

The following Long-Term IRs have been placed under review with developing implications:

Aspen Insurance Holdings Limited—

-- “bbb” on USD 300 million 4.65% senior unsecured notes, due 2023

-- “bbb” on USD 250 million 6% senior unsecured notes, due 2020 (of which USD 125 million remains outstanding)

-- “bb+” on USD 275 million 5.95% perpetual non-cumulative preference shares

-- “bb+” on USD 250 million 5.625% perpetual non-cumulative preference shares

The following indicative Long-Term IRs under the universal shelf registration have been placed under review with developing implications:

Aspen Insurance Holdings Limited—

-- “bbb” on senior unsecured debt

-- “bbb-” on senior subordinated debt

-- “bb+” on junior subordinated debt

-- “bb+” on preferred stock

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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