AM Best has revised the implications of the under review status to positive from developing for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Argus Insurance Company Limited and Bermuda Life Insurance Company Limited. Both companies are subsidiaries of Argus Group Holdings Limited (Argus Group) [BSX: AGH.BH]. Concurrently, AM Best has revised the under review status to positive from developing for the Long-Term ICR of “bbb-” (Good) of Argus Group. All companies are domiciled in Hamilton, Bermuda.

The Credit Ratings (ratings) reflect Argus Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The under review rating action on these credit ratings follows Argus Group’s and BF&M Limited’s (BF&M) joint announcement on June 28, 2024, that the two companies have signed a definitive agreement in which BF&M and Argus Group will combine in an all-stock transaction. Should this transaction close as announced, Argus Group likely would benefit from the combined financial strength and improved product and market diversification of the combined entity.

Prior to completion of the merger, Argus Group, though a subsidiary, intends to complete its acquisition of a 36.9% stake in BF&M from Camellia Plc (Camellia) in accord with a previous binding agreement. AM Best’s initial expectation is that the combined entity’s balance sheet strength assessment will be strongest — the assessed level currently given to Argus Group and BF&M individually — despite the issuance of debt to facilitate the acquisition of BF&M shares from Camellia.

The ratings will remain under review with positive implications pending regulatory approvals from the Bermuda Monetary Authority and the purchase of BF&M shares by Argus Group. This is expected to occur late in the fourth quarter of 2024.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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