Moody’s ups Endurance debt to A3

Moody's Investors Service said it upgraded the senior debt rating of Endurance Specialty Holdings Ltd. to A3 from Baa1 and the insurance financial strength ratings of Endurance's principal operating subsidiaries, Endurance Specialty Insurance Ltd. and Endurance Assurance Corp., to A1 from A2.

The outlook for all entities is stable.

Endurance is a wholly owned subsidiary of Sompo Japan Nipponkoa Insurance Inc. (IFS: A1, stable) since March. Sompo is part of Sompo Holdings, Inc.

“The rating upgrades reflect implicit and explicit support from Sompo as well as Moody's view that Endurance is strategically important to the group as part of Sompo's strategy to grow its specialty platform and diversify outside its domestic Japanese market,” the agency said in a news release.

Endurance is the group's largest international platform and accounted for approximately 19% of Sompo's pro forma fiscal year 2016 net income, although a relatively smaller contributor to Sompo's pro forma net premiums written at about 9%.

“Endurance's standalone credit profile reflects its strong position in specialty insurance and reinsurance lines, its conservative reserving philosophy and investment profile and its large capital base,” Moody’s added in the release.

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