Moody's affirms Sirius

Moody's Investors Service said it affirmed the A3 insurance financial strength ratings of Sirius International Insurance Corp. and Sirius America Insurance Co., along with the Baa3 senior debt rating and Ba2 preference shares rating of Sirius International Group, Ltd.

The affirmations follow news that its parent, White Mountains Insurance Group, Ltd., will reorganize and rebrand the group's reinsurance operations, Moody's said.

The reorganization is expected to be completed during the fourth quarter of 2011 subject to certain regulatory approvals, the agency said.

The outlook is stable.

As part of the planned reorganization, White Mountains' reinsurance business will be consolidated under Sirius International, with Sirius America becoming a wholly-owned subsidiary, Moody's said.

The ratings reflect the group's strong capitalization, good profitability, high-quality investment portfolio, sound underwriting discipline and good presence in the United States and European broker reinsurance markets, the agency said.

These strengths are tempered by volatility associated with property catastrophe exposures and the potential for adverse loss reserve development on legacy liabilities at Sirius America, Moody's said.

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