A.M. Best Places Credit Ratings of GBG Insurance Limited Under Review With Positive Implications. GBG Insurance Limited is a wholly owned subsidiary of GBGI Limited (GBGI), its non-operating holding company, which consolidates the GBG group (GBG).
The under review with positive implications status reflects A.M. Best’s opinion that, based on information currently available, there is a reasonable likelihood that GBG’s ratings will be raised following the acquisition. In particular, this reflects Bidco’s intention to make a capital injection into GBG of USD 10 million shortly after the close of the transaction in order to improve GBG’s risk-adjusted capitalisation and support its prospective business plans. In addition, following the announcement of the offer by Bidco, a new designated chief executive officer with substantial expertise in the life/health insurance sector, was appointed. Over time, A.M. Best believes that there is potential for GBG’s enterprise risk management framework to strengthen under the new leadership.
The ratings will remain under review pending the completion of the transaction and A.M. Best’s assessment of the impact of the planned change in ownership on GBG’s rating fundamentals.
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