S&P Global Ratings has downgraded the credit ratings of Vantage Group Holdings after its acquisition by Howard Hughes Holdings.

The ratings agency described the acquirer as being a “highly leveraged, lower-rated entity” and said the transaction pressures Vantage’s credit profile.

S&P Global Ratings lowered its long-term issuer credit rating on Vantage Group Holdings to BB from BBB- and its long-term issuer credit and financial strength ratings on its three core insurance operating subsidiaries - Vantage Risk, Vantage Risk Specialty Insurance Co, and Vantage Risk Assurance Co - to BBB from A-.

“Subsequently, we withdrew the ratings on Vantage and its subsidiaries, per the company's request,” S&P Global added. At the time of the withdrawal, the outlook on the ratings was stable.

Billionaire Bill Ackman, whose investment management company Pershing Square owns HHH, said at the time the transaction was announced last December, that insurance was the foundation for creating long-term shareholder value. HHH said it would inject an additional $200 million into Vantage.

Vantage was at the heart of transforming Howard Hughes from a real-estate-focused company into a diversified holding company with a substantial insurance operation.

Vantage has said it will keep operating under its existing leadership team, headed by chief executive Greg Hendrick, with no changes to its underwriting strategy, distribution model or client relationships.

To strengthen HHH’s insurance expertise, Marc Grandisson, the former chief executive officer of Arch Capital, has been appointed to the HHH board.

In its ratings report, S&P pointed out that HHH had a bb+ group credit profile. S&P views Vantage as a strategically important entity to HHH.

Vantage, a Class of 2020 Bermuda start-up, has achieved growth since it started underwriting in 2021 and S&P projects stronger earnings through 2028.

“To expand its US presence, Vantage acquired two Delaware-regulated shell insurance entities,” S&P added. “Because we expect Vantage's US specialty business to drive growth, we anticipate that the capital base in the US will increase, supporting expansion and enhancing dividend capacity.”

The rating agency also noted strong performance from Vantage in the first quarter of 2026, as the insurer grows in lines such as US casualty, excess and primary casualty, and construction in insurance, as well as property quota share, marine, and energy within reinsurance.

“We expect Vantage to generate a strong combined ratio averaging 93 per cent through 2028,” S&P stated. “As of year-end 2025, Vantage's capital adequacy was materially redundant at our 99.99 per cent confidence level. The company has also improved its underwriting, delivering a combined ratio of 94.1 per cent in 2025, compared with 97.7 per cent in 2024.”