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