A.M. Best Speaks on Proposed Merger of American Enterprise Group [Professional Services Close – Up]

A.M. Best Co. has said that the ratings of the subsidiaries of American Enterprise Group Inc. (Des Moines, Ia.) are unchanged following the announcement of a definitive agreement under which Medico Mutual Insurance Holding Company will be merged into American Enterprise Mutual Holding Company.

In a release, A.M. Best noted details:

The transaction allows American Enterprise Group (American Enterprise) to diversify and expand its distribution network in the senior marketplace. While the American Enterprise organization is in the process of exiting the individual major medical line of business, which provides a sizeable portion of overall premiums, the consolidation of operations with Medico Mutual Insurance Holding Company will increase its business in the senior market and allow for increased market penetration. In addition, the merger would provide expense synergies for the American Enterprise organization over the longer term and its solid risk-adjusted capital position is expected to be maintained. The transaction is expected to be finalized after the second quarter of 2012, subject to customary regulatory and policyholder approvals.

The ratings of the American Enterprise group of companies will continue to be actively monitored throughout the transaction period, and the ratings of the merged entity will be reviewed once the transaction is completed and A.M. Best has finalized its analysis.

A.M. Best Company is an insurance rating and information source.

More information:

ambest.com

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