AM Best Comments on Under Review Status of Lackawanna Casualty Company and Its Subsidiaries Following Acquisition

2019 MAY 13 (NewsRx) -- By a News Reporter-Staff News Editor at Mergers & Acquisitions Daily News -- AM Best has commented that the under review with negative implications status, the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of Lackawanna Casualty Company and its subsidiaries, Lackawanna American Insurance Company and Lackawanna National Insurance Company (collectively referred to as Lackawanna Insurance Group or Lackawanna), remain unchanged following the completion of Lackawanna’s acquisition by Group One Thousand One, LLC on April 1, 2019, through its subsidiary, Delaware Life Insurance Company.

Lackawanna’s Credit Ratings (ratings) will remain under review with negative implications until AM Best completes its discussions with management and finalizes its analysis of the company’s prospective business plan under its new parent.

Lackawanna’s ratings initially were placed under review with negative implications in November 2018, following the announcement of Lackawanna’s acquisition, primarily due to the potential of rating drag given that Lackawanna would be a subsidiary of the larger, lower rated [FSR of A- (Excellent)] Delaware Life Insurance Company. 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/20190426005292/en/

(Our reports deliver fact-based news of research and discoveries from around the world.)