AM Best Comments on Credit Ratings of American Family Insurance Group Members Following Acquisition Announcement of Ameriprise Auto & Home
2019 APR 16 (NewsRx) -- By a
The Credit Ratings (rating) reflect American Family’s post-transaction risk-adjusted capitalization, which remains in line with AM Best’s current assessment of balance sheet strength. AM Best believes that the addition of Ameriprise P&C Companies, with significant premium writings in
A significant level of execution risk is associated with a transaction of this size and scope. This risk is mitigated partially by American Family’s historical track record of successful integration with other risk-bearing entities (Permanent General, Homesite, and Main Street America, which is too recent to fully assess). In addition, American Family has historically provided explicit support to newly acquired entities in the form of intercompany reinsurance agreements.
AM Best expects the transaction to be completed in the second half of 2019 pending regulatory approval. American Family’s ratings will be evaluated on an ongoing basis until the transaction concludes, at which time AM Best will conduct discussions with management regarding the final terms of the transaction and its impact on balance sheet strength, operating performance, business profile, and enterprise risk management. This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases. AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information. Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: https://www.businesswire.com/news/home/20190403005487/en/
(Our reports deliver fact-based news of research and discoveries from around the world.)
Clients, others weigh in on Sendero Health Plans’ uncertain future
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News