This rating action follows the Aug. 3, 2006, completion of the acquisition by Lightyear Capital of a majority equity stake in Sirius America from White Mountains Insurance Group (White Mountains) [NYSE:WTM] (New York). As part of the transaction, White Mountains will maintain a significant equity investment in Sirius America. Also effective Aug. 3, Sirius America received regulatory approval to be renamed Delos Insurance Co.
The rating reflects A.M. Best's opinion as to the current stand-alone financial strength of Sirius America, removing any rating enhancement previously obtained from White Mountains. The rating also reflects Sirius America's sound business plan and the excellent track record of its management team in running its profitable insurance operations. A.M. Best will closely monitor Sirius America's premium growth and loss experience to ensure that capitalization remains supportive of the rating and will maintain close scrutiny over operating results to ensure that rating expectations are achieved.