A.M. Best has commented that the Credit Ratings (ratings) of The Navigators Group, Inc. (Navigators) (headquartered in Stamford, CT) [NYSE: NAV] and its insurance subsidiaries remain unchanged following the announcement that Navigators has entered into a share purchase agreement for the purchase of all the shares of Assurances Continentales – Continentale Verzekeringen NV (ASCO) and Bracht, Deckers & Mackelbert NV (BDM), both based in Antwerp, Belgium. ASCO is a specialty insurance company underwriting marine and property/casualty insurance, and BDM is an insurance underwriting agency that offers risk coverages in niche markets on behalf of ASCO and a number of major international insurers. Additionally, as part of the transaction, Navigators will acquire all the shares of Canal Re S.A., a Luxembourg reinsurance company that is a wholly owned subsidiary of ASCO.
The acquisition is expected to reinforce Navigators’ presence in the European Union’s (EU) single market, enabling Navigators to better serve its EU customers after Brexit. Navigators intends to use ASCO and BDM as its primary platform to serve clients in continental Europe on an ongoing basis. ASCO and BDM will increase market penetration for Navigators, adding to its existing underwriting operations in Antwerp, Madrid, Milan, Rotterdam and Paris.
Navigators will pay EUR 35 million in cash as aggregate consideration for the acquisition of the two companies. The transaction is subject to the satisfaction or waiver of customary closing conditions, including among other things, the receipt of regulatory approval, and is anticipated to close in the first half of 2018.
A.M. Best will continue to monitor the progress of the transaction and evaluate any developments and implications for impact on the ratings.
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.
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Jonathan Harris, CFA, FRM
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Senior Financial Analyst
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