A.M. Best Comments on Credit Ratings of Direct General Group Members and Subsidiary Following Acquisition by National General Holdings Corp.

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has commented that the Financial Strength Ratings (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb+” of the members of Direct General Group and a subsidiary, Direct General Life Insurance Company, remain under review with positive implications following the acquisition of their ultimate parent, Elara Holdings, Inc., by National General Holdings Corp. [NASDAQ:NGHC]. The transaction closed on Nov. 1, 2016.

The ratings will remain under review until A.M. Best concludes its review of the transaction and until pooling agreements for the property/casualty companies and associated capital management actions have been approved by regulators and taken effect. These actions are expected to be concluded in early 2017.

The FSRs of B (Fair) and the Long-Term ICRs of “bb+” remain under review with positive implications for Direct General Life Insurance Company and the following members of Direct General Group:

• Direct Insurance Company
• Direct General Insurance Company
• Direct General insurance Company of Louisiana
• Direct General Insurance Company of Mississippi
• Direct National Insurance Company

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

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Source: A.M. Best