A.M. Best Places Credit Ratings of National Farmers Union Property and Casualty Company Under Review With Negative Implications

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of National Farmers Union Property and Casualty Company (NFU P&C) (Sun Prairie, WI).

These Credit Ratings (ratings) have been placed under review with negative implications following the announcement by QBE Insurance Group Limited (QBE) (Australia) that it has entered an agreement to sell NFU P&C to National General Holdings Corp. (NGHC) (headquartered in New York, NY). The transaction is expected to close in the first half of 2019.

NFU P&C consists of personal insurance and farmowner business, as well as its telecommunications insurance program. The agreement enables QBE’s North America unit to focus on its specialty, core commercial, program, crop and reinsurance businesses, along with operations at Westwood Insurance Agency Inc., QBE’s California-based personal lines agency. The acquisition provides NGHC an opportunity to further its position in personal lines and to expand its distribution network.

The ratings will remain under review pending completion of the transaction. Upon NFU P&C’s inclusion into the National General Group, its ratings may be downgraded as the group’s members currently maintain an FSR of A- (Excellent).

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.