A.M. Best Places Ratings of United National Specialty Insurance Company Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has placed under review with developing implications the financial strength rating (FSR) of A (Excellent) and the issuer credit rating (ICR) of “a” of United National Specialty Insurance Company (United National Specialty) (Milwaukee, WI).

The rating actions reflect the recent announcement by State National Companies, Inc. (State National) [NASDAQ: SNC] of its intent to acquire United National Specialty as a shell company from United National Specialty’s immediate parent, Diamond State Insurance Company (Diamond State). United National Specialty will continue to benefit from the various reinsurance arrangements with its current parent and affiliates, although it is anticipated that the current 4% pooling arrangement will drop to 0% prior to the expected close of the transaction on or before Sept. 30, 2016. This change in the pooling arrangement reflects the intention of Global Indemnity plc, the ultimate parent, to fully reinsure all business currently on the books of United National Specialty and any business remaining on the books at the time of the close of the transaction. The insurance operating companies of State National currently have an FSR of A (Excellent) and ICRs of “a”. The outlook for each rating is stable.

The sale of the company is pending regulatory approvals, and the ratings will remain under review until A.M. Best has met with State National’s management and the transaction has closed.

This press release relates to rating(s) 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.

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. ALL RIGHTS RESERVED.

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A.M. Best

Gerard J. Altonji, +1-908-439-2200, ext. 5626

Assistant Vice President

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or

Daniel Ryan, +1-908-439-2200, ext. 5325

Vice President

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or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

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or

Jim Peavy, +1-908-439-2200, ext. 5644

Assistant Vice President, Public Relations

[email protected]

Source: A.M. Best