AM Best Removes from Under Review With Developing Implications and Affirms Credit Ratings of National Lloyds Insurance Company and American Summit Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of National Lloyds Insurance Company (NLIC) and American Summit Insurance Company (ASIC), collectively referred to as National Lloyds Group. The outlook assigned to these Credit Ratings (ratings) is stable. NLIC and ASIC are domiciled in Dallas, TX.

The ratings reflect the National Lloyds Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating actions follow Hilltop Holdings Inc.’s recently finalized sale of its wholly owned subsidiary, National Lloyds Corporation, an intermediate insurance holding company that owns NLIC and ASIC, to ReAlign Insurance Holdings, LLC a new insurance holding company formed by ReAlign Capital Strategies, LLC and private investors. The rating actions also consider the subsequent execution of an intercompany pooling agreement between the operating entities. The balance sheet strength assessment considers the change in ownership, updated dividend plan and the execution risk related to adding commercial auto and commercial property business to the NLIC and ASIC pool. Align Financial Holdings LLC, an affiliated program administrator with extensive experience underwriting profitable program business, will produce the new business. The operating performance assessment considers NLIC and ASIC’s favorable, but volatile, five-year average total return measures that are driven by frequent and severe weather-related events, a reflection of geographic concentration of the current book of business. This factor will be mitigated by the renewed emphasis on limited geographic and product expansion in 2021.

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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Janet Hernandez
Senior Financial Analyst

+1 908 439 2200, ext. 5767

janet.hernandez@ambest.com



Joseph Burtone
Director

+1 908 439 2200, ext. 5125

joseph.burtone@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

Source: AM Best