A.M. Best places Sphere Drake under review with positive implications in light of planned acquisition.OLDWICK, N.J.--(BUSINESS WIRE)--June 25, 1997--Effective immediately, A.M. Best Co. has placed the "B++" (Very Good) rating of Sphere Drake drake 1. male duck. 2. loliumtemulentum. Insurance plc and Sphere Drake Insurance (Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the ) Ltd. under review with positive implications. This action
follows the June June: see month. 23, 1997 announcement that Fairfax Financial Holdings Fairfax Financial Holdings Limited TSX: FFH.SV NYSE: FFH is a Toronto, Ontario based financial services holding company which, through its subsidiaries, is engaged in property, casualty and life insurance and reinsurance, investment management and insurance claims Ltd. will acquire Sphere Drake Holdings Ltd.
The acquisition is subject to certain closing conditions, including regulatory approval in Bermuda and the UK, and by the company's shareholders. The transaction is expected to be completed in the fourth quarter of 1997. A.M. Best views this acquisition as having long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. positive implications for the Sphere Drake group, as it stands to benefit from being part of a financially strong global insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. group with many of its insurance and reinsurance companies rated "A-" (Excellent) or higher by A.M. Best. A.M. Best expects to complete its review in the fourth quarter of 1997, after evaluating the long-term implications of the acquisition on the company's worldwide operations and the challenges associated with the integration into Fairfax Financial Holdings Ltd. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: Jeffrey Dunsavage 908/439-2200, ext. 5618 dunsavj@ambest.com |
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