AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of "a-" (Excellent) of Vantage Risk Ltd. (Bermuda) and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company (both domiciled in Wilmington, DE), which do business as Vantage Group. The outlook assigned to these Credit Ratings (ratings) is positive.

These ratings reflect Vantage Group's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The under review with developing implications status was removed upon completion of Howard Hughes Holdings' (HHH) (NYSE:HHH) acquisition of Vantage Group from Carlyle and Hellman & Friedman, for approximately USD 2.1 billion. This transaction closed on June 4, 2026.

The acquisition was financed from HHH's mixture of cash-on-hand and non-interest bearing, non-voting preferred stock issued to Pershing Square Holdings, Ltd (Pershing Square). The preferred shares will be split into 14 equally sized tranches that HHH will have the right to repurchase at the end of each fiscal year for the first seven years post-closing of the transaction.

Vantage Group's stand-alone operations are anticipated to remain broadly consistent post-transaction, with the exception of Pershing Square entering into a fee-free investment management agreement overseeing the group's investment portfolio. The change in investment management will coincide with a change in strategy, with a higher allocation to public equities. Although, AM Best's expectation is that the higher equity risk will be offset by a reduction in underwriting leverage via capital contributions from its parent company (HHH).

The positive outlooks reflect AM Best's expectation that over the near term, the group will continue to expand its presence in the specialty and reinsurance markets and execute its business plans post-acquisition. Vantage Group consists of three segments — insurance, reinsurance and insurance-linked securities.

AM Best recognizes the independence of Vantage Group under its new ownership group, and expects that Vantage Group will benefit from future infusions of capital rather than dividend outflows. These assumptions will be monitored closely under its new ownership structure.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260616539446/en/

Christopher Pennings

Senior Financial Analyst

+1 908 882 2237

christopher.pennings@ambest.com

Dan Hofmeister

Associate Director

+1 908 882 1893

dan.hofmeister@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Vantage Risk Ltd. and Its Affiliates