Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 04 May 2010
New York, May 04, 2010 -- Moody's Investors Service announced today that it has assigned a Baa3
senior unsecured debt rating to approximately $250 million of 10-year
senior notes to be issued by Ironshore Holdings (U.S.) Inc.
("Ironshore U.S."), and fully and unconditionally
guaranteed on a senior unsecured basis by its parent, Ironshore
Inc. ("Ironshore"). In the same rating action,
Moody's also assigned Baa1 insurance financial strength ratings
to Ironshore's principal operating subsidiaries. Proceeds
from the offering are expected to be used to support the insurance operations
of Ironshore and for general corporate purposes. The outlook for
the ratings is stable.
Ironshore, which was established in late 2006 and is privately held,
provides specialty property and casualty insurance on a global basis to
commercial customers through regional and global brokers. In late
2008, the company appointed Kevin Kelley, who had previously
been the CEO of AIG's Lexington Insurance Company, as its
CEO, and embarked on a strategic shift away from catastrophe exposed
property coverages toward a more diversified specialty casualty-focused
business mix. Ironshore's worldwide specialty insurance business
is underwritten in Bermuda, at Lloyd's of London ("Lloyd's")
and in the United States on both an admitted and excess surplus lines
basis. Primary lines written include professional liability,
property (including property catastrophe), healthcare liability,
environmental, aviation, marine and other specialty casualty
insurance coverages. During 2009, Ironshore reported gross
premiums written of $839 million, compared to $383
million during 2008. Casualty lines represented approximately 62%
of Ironshore's 2009 gross premiums written, with the remaining
38% coming from property coverages.
According to Moody's, Ironshore's ratings are based on the
group's good capitalization, high-quality investment portfolio,
moderate financial leverage and increasing market presence in the U.S.
and European specialty insurance markets. These strengths are tempered
by the company's rapid premium growth, which can lead to attendant
risks, the underwriting volatility and pricing uncertainty inherent
in many of the company's chosen lines of business, the company's
short track record as a casualty-focused specialty lines writer
and widespread rate softening among most casualty segments in recent years.
Casualty lines, by their nature, have significant pricing
uncertainty, given the latency between the time of policy issuance
and claim reporting and settlement, as well as uncertainties regarding
emerging claims and coverage issues. Moody's also noted that
Ironshore's expense ratio is currently elevated due to the expenses
associated with the build-out of the company's global operating
The rating agency stated that the two-notch spread between the
Baa3 senior unsecured debt rating at the intermediate U.S.
holding company and the Baa1 insurance financial strength ratings at the
operating companies reflect the fact that the group maintains the bulk
of its capital within its flagship Bermuda insurance company, Ironshore
Insurance Ltd., which has relatively modest regulatory restrictions
on the transfer of dividends to its parent holding company, as compared
to insurance holding company structures in the United States.
According to Moody's, the Baa3 senior unsecured debt rating
of Ironshore U.S. reflects the full and unconditional guarantee
on a senior unsecured basis by the ultimate holding company. The
insurance financial strength ratings of Ironshore's U.S.-based
operating subsidiaries consider the high degree of structural support
from, and risk sharing with, Ironshore Insurance Ltd.
through quota-share reinsurance arrangements, as well as
the sharing of the Ironshore brand identity.
Moody's stated that its expectations for Ironshore at the current rating
level are that the company will continue to maintain a moderate financial
leverage profile (e.g. less than 30% adjusted debt
to capital), that gross underwriting leverage will remain below
4x, and that shareholders' equity will not be eroded by more
than 10% over a 12-month period due to catastrophe,
investment or other losses.
Moody's also noted that Ironshore maintains a GBP 21.9 million
bank credit facility that provides capital support for the company's
Lloyd's operations. This LOC has several financial covenants,
including the maintenance of a certain minimum tangible net worth,
some level of unencumbered assets and a debt to tangible capital ratio
below 20%. The failure to comply with these covenants could
result in an event of default under the LOC, which if not cured
or waived, could result in an event of default on the senior notes
issued by Ironshore U.S. In Moody's opinion,
this is not a material credit factor at this point as the firm has ample
flexibility in curing possible LOC covenant breaches. Nonetheless,
the risk remains and could become more meaningful if the flexibility under
the covenants or Ironshore's willingness and/or ability to cure
such breaches declined.
The following ratings have been assigned with stable outlooks:
Ironshore Holdings (U.S.) Inc. -- guaranteed
senior unsecured debt at Baa3;
Ironshore Insurance Ltd. -- insurance financial strength at
Ironshore Indemnity Inc. -- insurance financial strength at
Ironshore Specialty Insurance Company -- insurance financial strength
Ironshore Inc., headquartered in Bermuda, is engaged
through its subsidiaries in underwriting specialty property and casualty
insurance on a global basis. At December 31, 2009,
Ironshore had GAAP shareholders' equity of approximately $1.4
This rating action constitutes Moody's first rating action on Ironshore.
The principal methodologies used in rating Ironshore were Moody's Global
Rating Methodology for Property and Casualty Insurers and Moody's Global
Rating Methodology for Reinsurers, published in July 2008 and available
on www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab. Other methodologies and factors
that may have been considered in the process of rating this issuer can
also be found in the Rating Methodologies sub-directory on Moody's
Moody's insurance financial strength ratings are opinions of the ability
of insurance companies and reinsurers to repay punctually senior policyholder
claims and obligations. For more information, visit our website
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service
Moody's rates Ironshore's senior notes Baa3; insurance financial strength of operating subsidiaries rated Baa1
Senior Vice President
Financial Institutions Group
Moody's Investors Service
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.