AM Best Places Credit Ratings of Merit Life Insurance Co. Under Review with Developing Implications

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Merit Life Insurance Co. (Merit) (Fort Worth, TX).

The Credit Ratings of Merit, which were last updated in December 2018, were placed under review with developing implications due to the recent public disclosure by its parent, OneMain Holdings, Inc. (OneMain), of its intent to divest the entity. OneMain indicated in its most recent public filing that it had entered into a share purchase agreement with a third-party insurance holding company to sell all of the issued and outstanding shares of Merit. The transaction is expected to close early in the third quarter of 2019. The ratings will remain under review pending upcoming discussions with the acquirer’s management, including analysis of proforma projections of capital and earnings, for assessment of the potential impact on the company’s current ratings.

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.

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Kate Steffanelli

Senior Financial Analyst

+1 908 439 2200, ext. 5063

kate.steffanelli@ambest.com

Michael Adams

Senior Financial Analyst

+1 908 439 2200, ext. 5133

michael.adams@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com